Question

In a _______ the general partners assume unlimited personal liability for the partnership debts, however, the limited partners assume no liability beyond the capital they invested and have no part in the management.

Answer 1

Answer: limited partnership

Explanation: In simple words, limited partnership refers to an arrangement having two or more general partners and limited partners. The general partners in such an arrangement is usually an entity such as a corporation and they bore unlimited liability and keeps track of the management.

While on the other hand, the limited partners are usually someone having goodwill or market experience. They have liability to the extent of their investment and do not take part in management.