Question

Which one of the following is an advantage of being a limited partner? Group of answer choices No power or obligation to control the daily operations of the firm Unlimited profits without risk of incurring a loss Active market for ownership interest Nontaxable share of any profits Losses not limited to capital invested

Answer 1

Answer:

No power or obligation to control the daily operations of the firm.

Explanation:

Partnerships consist of two types: general partnerships and limited partnerships. General partnerships have 2 or more partners who collaboratively manage the daily operations of the company and are both responsible for its financial issues. Limited partnerships are formed by both kinds of partners (limited and general), but the limited partners are generally just investors that do not share the same daily responsiblities than general partners do.