Which of the Following Statements Regarding Limited Partnerships Is True

question 33

Multiple Choice

Which of the following statements regarding limited partnerships is true?

• A) There is no limit on a limited partner's liability.
• B) A limited partner's liability is limited by the amount of their investment.
• C) A limited partner is not liable until all of the assets of the general partners have been exhausted.
• D) A general partner's liability is limited by the amount of their investment.

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Definitions:

Checking Account

A bank account that allows for numerous withdrawals and deposits, intended primarily for daily transactions.

Check Register

A record book used to track checks written, deposits made, and the current balance of a checking account.

Endorser

Signature on the back of the check of the payee.

Endorsement

An act of giving one's public approval or support to someone or something, often used in contexts of advertisements or political backing.