Let’s Check

1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. TRUE
6. TRUE
7. TRUE
8. TRUE
9. TRUE
10. TRUE

Let’s Analyze
1. There are two or more partners who go into business together, but only
one or more partners are responsible for the sum of their investment.
Unlimited liability lies with the general partner of the LP.

- Under a limited partnership, a general partner is the partner who is directly

accountable. For both the company and their own private properties, they
assume direct and shared responsibility, and typically serve as the
company's managing director and representative. There can also be a
limited partnership with many general partners that may be both natural
and legal persons.

2. Limited partners are still unable to participate in the general management

and regular activities of the partnership business without in the eyes of the
law, being called general partners.

3. A limited partner is a member of the limited partnership who makes a

contribution to the limited partnership and is only responsible for the liability of
the business up to the value of the contribution. In the other hand, the general
partner is responsible for all their assets. Unless otherwise defined by the
articles of association, the limited partner is exempt from management and
involvement in the enterprise.