Question 23
Business UnitsWhich of the following statements is true of limited partnership?
- A.Every member is a limited partner
- B.All members are general partners
- C.All members have limited liability
- D.There is at least one ordinary partner
- E.Limited and ordinary partners must be equal in number
Show the answer and explanation
Answer: D (There is at least one ordinary partner)
Explanation
A limited partnership must have at least one general (ordinary) partner with unlimited liability.