Limited Partnerships Flashcards
1
Q
Partner Authority to Bind the Partnership
A
Only the general partner has the authority to bind the partnership and make management decisions.
2
Q
LP Liability
A
The general partner is liable for all partnership obligations.
The limited partners are liable only to the extent they risk their invested capital. Profits and losses are shared according to their limited partnership capital accounts.
3
Q
Voting Rights
A
In an LP, limited partners can vote on major issues, such as the dissolution of the partnership or sale of all or the majority of assets of the partnership.
