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Which of the following statements is correct with respect to a limited partnership?
Suggested Answer: C
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Choice 'c' is correct. In a limited partnership, a general partner may be a secured creditor of the limited partnership.
Choice 'a' is incorrect. In a limited partnership, a limited partner may be an unsecured creditor of the limited partnership.
Choice 'b' is incorrect. In a limited partnership, a general partner may also be a limited partner at the same time.
Choice 'd' is incorrect. In a limited partnership, only the limited partners will have limited liability. A limited partnership must have at least one general partner and general partners have unlimited liability.
(The word 'all' makes this option wrong.)
12 comments · newest first
LO
Lorriane
3 days ago
A is tricky. Limited partners can be creditors, just not unsecured.
SU
Sunshine
8 days ago
I agree, C makes sense. They have more rights.
WY
Wynell
13 days ago
I think C is correct. General partners can be secured creditors.
VE
Venita
18 days ago
D is totally wrong; not all partners can have limited liability.
AN
Antonio
23 days ago
I thought limited partnerships had to have at least one general partner.
YV
Yvette
28 days ago
Wait, can a general partner really be a secured creditor?
SH
Shalon
1 month ago
I agree, option A is incorrect.
SO
Sonia
1 month ago
A limited partner can definitely be an unsecured creditor.
CH
Chaya
1 month ago
I definitely remember that a general partner can also be a limited partner, so option B seems wrong, but I’m not confident about the other options.
GR
Graciela
2 months ago
I feel like option A is tricky; I thought limited partners could still have some creditor rights, but maybe not as unsecured ones?
RE
Reita
2 months ago
I remember something about limited partners being protected from personal liability, but I can't recall if they can be unsecured creditors or not.
RO
Rory
2 months ago
I think option C sounds familiar because we discussed how general partners can have different roles, but I'm not entirely sure about the secured creditor part.