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AICPA CPA-Business Exam - Topic 3 Question 131 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 131
Topic #: 3

[All CPA-Business Questions]

Which of the following statements is correct with respect to a limited partnership?

AA limited partner may not be an unsecured creditor of the limited partnership.

BA general partner may not also be a limited partner at the same time.

CA general partner may be a secured creditor of the limited partnership.

DA limited partnership can be formed with limited liability for all partners.

Show Suggested Answer

Suggested Answer: C

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.)

by Jacqueline at Aug 13, 2026, 12:05 PM

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Graciela

4 days ago

I feel like option A is tricky; I thought limited partners could still have some creditor rights, but maybe not as unsecured ones?

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Reita

9 days 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.

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Rory

14 days 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.

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