In a limited partnership, the general partners should encourage the limited partners to take a more active role in the operations of the business. After all, the limited partner has comparable liability in the business, even though he/she may not be a partner for as long a period of time as the general partners.

A. True

B. False

Question

Business

Tiara Aguilar

16 August, 08:51

In a limited partnership, the general partners should encourage the limited partners to take a more active role in the operations of the business. After all, the limited partner has comparable liability in the business, even though he/she may not be a partner for as long a period of time as the general partners.

A. True

B. False

+1

Answers (1)

Know the Answer?

Brady Wong · Answer 1

The correct answer is letter "B": False.

Explanation:

A Limited Partnership involves two or more partners conducting a business. The general partners are those with unlimited liability over the business and power to make decisions on the course of the company. Limited partners do not influence in business decisions but do not share liabilities with general partners.

However, both the general and limited partners share profits for the time they decide to work together.