Which of the Following Is Incorrect with Respect to the Law

question 141

Multiple Choice

Which of the following is incorrect with respect to the law governing limited partnerships?

• A) Limited partners' liability only extends to the amount of money they have invested in the partnership.
• B) Limited partners, once registered as such, are assured of limited liability.
• C) Limited partners can lose their limited status by participating in management.
• D) Limited partners can lose their limited status by allowing their names to be associated with the name of the partnership.
• E) Limited partners can lose their limited status by failing to register as such.

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Definitions:

Repair Shop

A place or business where mechanical or electronic items are fixed or maintained.

Merchant

An individual or business entity involved in the trade of goods or services, especially one dealing with the sale of goods.

Uniform Commercial Code

A comprehensive set of laws and regulations that govern commercial transactions in the United States, intended to harmonize laws across states.

Ordinary Buyers

Refers to typical consumers in the market who purchase goods or services for personal use.