R8 Limited Partnership Flashcards
Can a limited partnership be formed with limited liability for all partners?
No, a limited partnership must have at least one general partner who will be personally liable for all partnership debts
Is a limited partner personally liable for the debts of the partnership?
No, a limited partner is not personally liable for the debts of the partnership unless the limited partner is also a general partner, or under the revised Uniform Limited Partnership Act, allows his name to be used in the partnership agreement or takes control of the partnership and a creditor reasonably believes the limited partner is a general partner
A limited partner has apparent authority to bind his limited partnership on contracts apparently within the scope of the partnership business. True or False?
False, limited partners are like shareholders of a corporation and have no apparent authority to bind their partnership in contract.
How does a limited partnership allocate their profits and losses?
Absent to an agreement, profits and losses are shared according to their capital contributions
