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In: Economics

Under partnership law, ________ have the right to manage the affairs of the limited partnership.

Under partnership law, ________ have the right to manage the affairs of the limited partnership.

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Expert Solution

Under partnership law, general partners have the right to manage the affairs of the limited partnership.

Explanation: Limited partnerships are designed so that these partners do not lose their personal assets due to failure in paying business debts. They are only liable to the amount of their own investment. There are both general partners and limited partners, however limited partners do not hold financial liabilities for business debts and do not hold a say in the day to day activities but only share profits. General partners on the other hand, perform the same roles that they do in a general partnership and are liable for both the business as well as their personal assets and are responsible for the management of the partnership.

Example: The family limited partnership is a common sight where the entire family selects a general partner and invests all their money with him/her and then take their share of profits once the investments have matured.

Rahul Sunny answered 2 years ago
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