Which of the Following Statements Is Incorrect

question 36

Multiple Choice

Which of the following statements is incorrect?

• A) In a limited partnership, all partners participate in managerial decision making.
• B) Limited partners' liability for partnership debt is limited to their amount of investment.
• C) In a general partnership, all partners have unlimited liability for partnership debts.
• D) All of the above are correct.

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Definitions:

Duty Delegated

The assignment of responsibilities or tasks by someone in authority to another person or entity.

Privity of Contract

A doctrine in contract law that stipulates that only parties involved in the contract have the rights and responsibilities to enforce it.

Contract Rights

The legal benefits and obligations that are created by a contract for the parties involved.

Incidental Benefit

A non-intended advantage or favor a party receives from a contract made between other parties.