Partners who are only liable for their own part of investment are considered as___________________?
Correct answer: C. Limited partners
- A. Venture partners
- B. Corporate partners
- C. Limited partners
- D. General partners
Explanation
Limited partners are liable only up to the amount they invest, provided they do not take on the management role of general partners. General partners normally face unlimited liability for partnership obligations.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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