Some Partners, Known as Limited Partners, May Not Be Personally

question 48

True/False

Some partners, known as limited partners, may not be personally liable for the debts of the partnership.

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Definitions:

Personal Funds

Money that belongs to an individual and is used for personal, not business, purposes.

Angel Investor

A financially well-to-do person who backs a beginning enterprise, usually receiving convertible debt or a portion of ownership in exchange.

Bootstrapping

A self-starting process that is supposed to proceed without external input, often used to describe startups that grow without major external funding.

Penny Pinching

The act of being very careful with money, often by trying to reduce spending.