Limited Partners Can Participate in a Single Aspect of the Business

question 48

True/False

Limited partners can participate in a single aspect of the business (for instance, sales or marketing), but they cannot participate in the general operational activities of the business.

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Definitions:

Revoked Unilaterally

The act of cancelling or reversing a decision, right, or agreement by one party without the consent of the other parties involved.

Chapter 11 Bankruptcy

A form of bankruptcy that involves the reorganization of a debtor's business affairs, debts, and assets, allowing the business to continue its operation.

Apparent Authority

An accountability doctrine whereby a principal, by virtue of words or actions, leads a third party to believe that an agent has authority but no such authority was intended. Also called ostensible authority and agency by estoppel.

Agency by Estoppel

A situation where a person is prevented by their own actions from denying or negating the existence of an agency relationship.