[amp_mcq option1=”Partnership-at-will” option2=”Limited partnership” option3=”General partnership” option4=”Particular partnership” correct=”option2″]
The correct answer is B. Limited partnership.
A limited partnership is a type of partnership where at least one partner has unlimited liability and the other partners have limited liability. The partners with limited liability are called limited partners, and the partners with unlimited liability are called general partners.
In a limited partnership, the limited partners are not personally liable for the debts and obligations of the partnership. This means that their personal assets cannot be used to satisfy the debts of the partnership. The general partners, on the other hand, are personally liable for the debts and obligations of the partnership. This means that their personal assets can be used to satisfy the debts of the partnership.
Limited partnerships are often used by businesses that need to raise capital. The limited partners provide the capital, and the general partners manage the business. This allows the limited partners to invest in a business without being personally liable for the debts and obligations of the business.
Here is a brief explanation of each option:
- A. Partnership-at-will is a type of partnership that can be dissolved at any time by any partner. There is no fixed term for a partnership-at-will.
- C. General partnership is a type of partnership where all partners have unlimited liability. This means that the personal assets of all partners can be used to satisfy the debts of the partnership.
- D. Particular partnership is not a recognized type of partnership.