Question

All of the following define the responsibilities of a limited partner EXCEPT:

A.
no financial investment in the business
B.
no involvement with management decisions
C.
no liability for the actions of the general partners
D.
no day-to-day involvement in running the business


Please select the best answer from the choices provided

A
B
C
D

Answer 1

The actual answer is A

Step-by-step explanation:

Limited partners support the general partners with financial investment. "A" says no financial investment but actually they do, meaning "A" is false, making it the right answer. It's confusing but "A" is the right answer

Answer 2

Correct Answer:

D.

no day-to-day involvement in running the business

Step-by-step explanation:

In partnership business, there are two major contributors who ensures that the business is running fully. The limited partner is one of the group. There function is limited leading to them investing only finances in the partnership business most of the time.

The day-to-day running of the business is left to the hand of the other partners.