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Dovator [93]
2 years ago
5

Development lp is a limited partnership that invests in residential real estate projects. Its limited partners include more than

150 sophisticated investors and investment professionals, including ethan. Ethan loses his limited liability if he:.
Business
1 answer:
FrozenT [24]2 years ago
8 0

Ethan loses his limited liability if he participates in the firm’s management.

<h3>Who is a Limited Partner?</h3>

A limited partner can be described as a part-owner of a limited partnership business who does not involve in the management of the partnership business.

The liability for the company's debts of a limited partner is limited to the amount invested in the business.

Limited partners are frequently referred to as "silent partners."

A limited partner is different from a general partner.

A general partner refers to a partner that is in charge of the day-to-day operations of the company, takes investment decisions on behalf of the company, and has unlimited liability for the company's debts and liabilities.

Therefore, Ethan will lose his limited liability if he participates in the firm’s management as he has become a general partner.

Learn more about limited partnership here: brainly.com/question/9244934.

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