In a limited partnership, who has limited liability?

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Question: In a limited partnership, who has limited liability?

Options:

Correct Answer: Limited partners

Solution:

In a limited partnership, limited partners have limited liability, meaning they are only liable for the amount they invested.

In a limited partnership, who has limited liability?

In a limited partnership, who has limited liability?

Step 1: Understand what a limited partnership is. It is a type of business structure with at least one general partner and one limited partner.
Step 2: Identify the roles in a limited partnership. The general partner manages the business and has unlimited liability, while the limited partner invests money but does not manage the business.
Step 3: Learn about limited liability. Limited liability means that a person is only responsible for the debts of the business up to the amount they invested.
Step 4: Conclude that in a limited partnership, it is the limited partners who have limited liability.

Limited Partnership – A business structure where some partners have limited liability, while at least one partner has unlimited liability.
Limited Liability – A legal structure that protects investors from being personally liable for the debts of the business beyond their investment.
Roles of Partners – Understanding the difference between general partners (who manage the business and have unlimited liability) and limited partners (who invest and have limited liability).