Question 83
Business UnitsWhich of the following is true of limited partnership?
- A.All partners enjoy unlimited liability
- B.The death of a partner prolongs the life span of the organization
- C.Capital can be withdrawn without the consent of other partners
- D.All members are paid by the partners
- E.A limited partner has no share in the management of the firm
Show the answer and explanation
Answer: E (A limited partner has no share in the management of the firm)
Explanation
A limited partner only contributes capital; he may not take part in running the firm.