Question

Darin is a limited partner in Eco Baits, a pest control service organized as a limited partnership, which cannot pay its debts. Darin is liable for the debts​ Select one: a. ​to no extent. b. ​to the extent of her capital contribution to the firm. c. ​in proportion to the number of partners in the firm. d. ​to the full extent.

Answer 1

B) ​to the extent of her capital contribution to the firm.

Step-by-step explanation:

The characteristics of a limited partnerships are:

• limited partnerships, unlike general partnerships, must be filed with a state government
• the partners of a limited partnership have limited personal liability which equals the amount of their participation in the partnership, e.g. Darin is only liable to a maximum amount that equals her participation in the partnership
• limited partnerships are controlled by the partners
• limited partnerships are taxed like general partnerships