Question

Finley is a limited partner in Gettout & Associates. Heywood U. Gettout, one of the general partners in the company, must temporarily leave the company to attend to some personal matters. Heywood has asked Finley to perform his managerial duties while he is gone. As a limited partner, Finley:

A. can fill in as a manager whenever necessary, as long as it is for only a limited time.
B. can make managerial decisions as long as they do not involve the payment of money.
C. cannot participate in the management of the partnership.
D. can manage the firm as long as he gets approval from the company's other general partners.

Answer 1

As a limited partner, Finley typically cannot participate in the management of the partnership (Option C).

Step-by-step explanation:

Limited partners have a passive role and are generally restricted from engaging in the day-to-day management of the business. However, there are exceptions. If Heywood U. Gettout, a general partner, grants Finley specific authority or if the partnership agreement allows temporary managerial involvement, Finley might step in to perform managerial duties during Heywood's absence.

However, this involvement would be limited to the scope specified by the general partner or the partnership agreement. Without explicit permission or authorization from the other general partners as outlined in the partnership agreement, Finley's authority to manage the firm as a limited partner would be restricted.