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Commerce · Q961

Financial Management

Graduate and Post Graduate · Commerce · question 961

Q961

Type of partnership in which liabilities are limited for business owners is classified as

A.
unlimited partnership
B.
limited partnership
Answer
C.
joint corporate
D.
joint venture

Answer: Option B

Solution

Answer: Option B
Solution:
Type of partnership in which liabilities are limited for business owners is classified as limited partnership. A limited partnership (LP) not to be confused with a limited liability partnership exists when two or more partners unite to conduct a business in which one or more of the partners is liable only up to the amount of their investment.