Question

In a limited partnership, the limited partners: a) are liable only for the amount of their capital contributions b) share the amount of personal liabilities equally c) have only insurance as protection against liability suits d) are allowed to decide on the amount of individual liabilities.

Answer 1

a) are liable only for the amount of their capital contributions

Step-by-step explanation:

A limited partner is a type of partnership that defines the liability of a partner in a partnership business to be restricted to only the initial capital contributed by him. That is, whose liability for the firm's debts cannot exceed the amount that an individual invested in the company. Limited partners are frequently called silent partners.

A limited partner or silent partner capitalizes money in trade for shares in the partnership but has constrained voting power on company business decisions and no day-to-day involvement in the business.

Answer 2

In limited liability the liable only for the amount of capital contributions.

Step-by-step explanation:

A limited liability partnership is a business enterprise that allows limited partners to enjoy limited personal liability while general partners have access to unlimited personal liability.

A limited partnership has similarities to a general partnership except that it has two classes of partners. The general partners have full management and control of the partnership business but also accept the entire personal responsibility for partnership liabilities. The limited partners have no personal liability except their investment in the partnership interest. Limited partners do not have the capability to participate in the general management and day to day operations of the partnership business without being considered general partners according to the law.