general partners have limited personal liability for business debts in a limited partnership. True or false...

general partners have limited personal liability for business debts in a limited partnership.

True or false

And can you explain.

Solutions

Expert Solution

The statement is false.

The limited partnership has two type of partners which are general partners and limited partners. In case of limited partners the liability of these partners are limited to the extent of capital contributed by them and they are not personally liable for any amount higher than this. However this is not the case with general partners, the general partners have unlimited personal liability that is they are liable for all debt of the company personally which could be higher than amount of capital contributed by them. Limited personal liability means they would not be liable to pay for debt in excess of their capital contribution while unlimited personal liability means they would be liable to pay for all debt of partnership in case of any issue.

jeff jeffy answered 2 years ago

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