Finance (FINC) Test 1 Practice

In a Limited Partnership, who typically runs the business?

Limited partners run the business One or more general partners runs the business The partnership agreement says two people The corporation runs the business

Correct Answer:

One or more general partners runs the business

Explanation:

In a Limited Partnership, the day-to-day operations are run by the general partners. General partners actively manage the business and take on the liability for the partnership’s obligations. Limited partners contribute capital and share in profits but are typically passive investors with liability limited to their investment. The partnership agreement may specify who the general partners are and how many there are, but the key idea is that those who actually run the business are the general partners rather than the limited partners (or a corporate entity acting alone).

Access more questions from this quiz

Continue to Finance (FINC) Test 1 Practice for more practice questions and the full quiz experience.

Access More Questions