Question

Why might a limited partnership have a greater ability to raise capital than a general partnership?

Answer 1

A limited partnership have a greater ability to raise capital than a general partnership because increased attractiveness due to limits on liability.

Option: B

Explanation:

In a perfect business strategy limited partnership is most preferred than general partnership because limited partnership allows companies to be partner or share holder on the basis of work efficiency, current status and popularity. Whereas general partnership do not judge all these quality factors and take whoever want to be partner as well.

Therefore, limited partnerships have a greater ability to raise capital than a general partnership as it increased attractiveness due to limits on liability.