Which of the following statements is true about limited partnerships?(1 point)

Question

Responses

There is mutual agency among all partners in limited partnerships.
There is mutual agency among all partners in limited partnerships.

There are no partners with general liability status in a limited partnership.
There are no partners with general liability status in a limited partnership.

Limited partners have unlimited liability for the limited partnership.
Limited partners have unlimited liability for the limited partnership.

Limited partners require final approval from the general partners on management decisions.

Answer 1

The correct statement is:

Limited partners require final approval from the general partners on management decisions.

In a limited partnership, general partners have full control and management authority, while limited partners typically do not participate in the day-to-day management and their liability is limited to their investment in the partnership. However, they do require the approval of general partners for certain decisions.

The other statements are false:

• There is not mutual agency among all partners in a limited partnership; only general partners have that authority.
• There are partners with general liability status (the general partners).
• Limited partners do not have unlimited liability; their liability is limited to their capital contribution.