Which of the Following Is the Limit of Liability of a Limited

question 76

Multiple Choice

Which of the following is the limit of liability of a limited partner?

• A)the amount of their investment
• B)the amount of business capital
• C)the amount of their shared profits
• D)the amount of their personal assets

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Definitions:

Gain or Loss

Represents the difference between the sale price and the purchase price of an asset, where it is a gain if the sale price is higher and a loss if the purchase price is higher.

Redeemed

The process of repaying or buying back securities or bonds before their maturity date.

Face Value

Is the nominal value or dollar value stated on a financial instrument, such as a bond or a stock.

Bond Issue

The process by which a borrower issues bonds to investors in order to raise capital under specific terms of repayment and interest.