WAEC Commerce 1992 Question 83

Question 83

Business Units

Which of the following is true of limited partnership?

  1. A.All partners enjoy unlimited liability
  2. B.The death of a partner prolongs the life span of the organization
  3. C.Capital can be withdrawn without the consent of other partners
  4. D.All members are paid by the partners
  5. 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.