Question

In a limited partnership, who assumes unlimited personal liability for the debts of the partnership?

(A) General partners
(B) Limited partners
(C) Special partners
(D) General partners, limited partners, and special partners
(E) General partners and special partners, but not limited partners

Answer 1

Answer: Option A

Step-by-step explanation: In a limited partnership only general partners can assume unlimited liability.

A general partner is the one having major authority in the business and who is personally liable to all the debts in the company.

Whereas a limited partner is the one getting limited profits and having limited liability. Similarly a special partner too cannot have unlimited liability as he cannot contribute in company affairs.