Question

The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond:

Select one:
a. The firm's total assets.
b. The amount they have invested in the company.
c. The percentage of profits they are entitled to earn.
d. Their total personal assets

Answer 1

Limited partners are not responsible for the debts of the business beyond the amount they have invested.

Step-by-step explanation:

The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond the amount they have invested in the company. This means that the personal assets of the limited partners are not at risk if the company were to fail. For example, if a limited partner invests $10,000 in a business and the business accrues $50,000 in debt, the limited partner would only be responsible for the $10,000 they invested, not the full $50,000 debt.