Which of the Following Statements Is True Regarding Limited Partners

question 36

Multiple Choice

Which of the following statements is true regarding limited partners in a limited partnership?

• A) Both the right to manage and the right to bind the limited partnership are reserved to the limited partners.
• B) The limited partners of a limited partnership are personally liable for the partnership's debts.
• C) The limited partners have the power to bind the partnership.
• D) The limited partners do not have any say in the ordinary operations of the partnership.

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Definitions:

Rival

Refers to a competitor within the same market that offers similar products or services.

Nonexcludable

A nonexcludable good or service is one where it is impossible, or highly costly, to prevent someone from benefiting from it, regardless of whether they have contributed towards it, such as public parks or national defense.

Pigouvian Tax

A tax imposed on any market activity that generates negative externalities (costs not borne by the party causing them) to correct the market outcome.

Tradable Licenses

Permits that can be bought and sold, allowing the holder to engage in a particular activity or emit a certain amount of pollutants.