Question

Assume that the football team is set up as limited partnership. Lenny is the only general partner and Sarah and Sam are the only limited partners. Who would make the decision about whether or not to fire the quarterback?a) Lenny, Sarah and Sam would vote on it.b)The board of directors of the team.c) Only Lenny.d) Only Sarah and Sam.

Answer 1

Answer:

b. The board of directors of the team.

Explanation:

Limited partnership is a form of partnership owned by two or more partners and in which liabilities of some partners are only limited to their investment in the business. The partnership business is being managed and controlled by the general partner who has unlimited liabilities.

For a general partner in a limited partnership, he has unlimited liability. In case of dissolution of the partnership business , he losses both his investment in the business and personal properties.

The limited partners only looses their investment in the business in case of liquidation.