Final answer:
Limited partners in a limited partnership have limited liability, meaning they are only liable for the amount of their investment in the company and their personal assets are protected. The correct answer to the question is (2) limited liability.
Step-by-step explanation:
In a limited partnership, different types of partners have different levels of liability. The two primary roles are general partners and limited partners. General partners manage the business and are subject to unlimited liability, which means they are personally responsible for all the business's debts. This could result in losing personal assets in cases of business failure. On the other hand, limited partners usually have a passive role in the company and their liability is restricted.
Limited partners' liability is limited to the amount they have invested in the business. This is a significant advantage, as it protects the personal assets of the limited partners, such as homes, cars, and personal bank accounts, from being used to settle business debts or lawsuits. The correct answer to the question regarding the type of liability that limited partners have in a limited partnership is (2) limited liability.
It's important to note that, despite their limited liability, the actions of the other partners can still affect limited partners. If a general partner acts irresponsibly, for example, the partnership might face financial risks that impact all partners. Moreover, the existence of the limited partnership itself can be affected by the dynamics between partners, such as departure or death of a partner. The business might endure, but the partnership as it was initially structured may change or end.