MENU
Which of the following activities by a limited partner may subject the partner to unlimited liability?
Suggested Answer: B
Get Premium Series-7 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
deductions from gross income to offset lower value of equipment. Depreciation is the deduction of costs for capital assets as their value declines.
31 comments · newest first
MA
Maryln
11 months ago
I thought limited partners were safe from liability, this is surprising!
LE
Leatha
11 months ago
Committing the partnership is definitely risky for limited partners.
JA
Jaclyn
12 months ago
Wait, all of these could lead to unlimited liability? Really?
BE
Bette
12 months ago
Totally agree, management involvement is a big no-no!
SH
Sharmaine
1 year ago
A limited partner can lose their limited status if they manage the partnership.
BE
Benedict
1 year ago
I think I read that if a limited partner does too much, like managing or committing the partnership, they could lose their limited status. So maybe D is the answer?
TH
Thaddeus
1 year ago
I feel like all of these activities could potentially lead to unlimited liability, but I can't recall if making loans is a definite risk.
ME
Meaghan
1 year ago
I remember a practice question that mentioned committing the partnership in any manner could expose a limited partner. Is that what this is asking?
FR
Francoise
1 year ago
I think participating in management could definitely lead to unlimited liability, but I'm not sure about the other options.
MA
Mabel
1 year ago
Okay, I've got this. The key is that a limited partner can't do anything that makes them look like a general partner. So the answer has to be D - all of those activities could potentially expose the limited partner to unlimited liability.
DA
Darrin
1 year ago
Ugh, I hate these partnership liability questions. They're so confusing! I'm going to have to think this through carefully. Maybe I'll start by eliminating the options that seem least likely.
EL
Elenora
1 year ago
Hmm, this is a tricky one. I'm not totally sure, but I think it might be A - participating in management of the partnership. I'll have to review the material on limited partner liability again.
VA
Val
1 year ago
I'm pretty sure the answer is D - all of the above. Limited partners have to be really careful not to overstep their bounds and take on too much management responsibility.
RY
Ryan
1 year ago
Wait, did someone say 'unlimited liability'? Yikes, I'm going with D and keeping my limited status intact!
IZ
Izetta
2 years ago
D, all the way. I'd rather not become an unlimited partner by accident. That would be a real liability, if you ask me!
BR
Brittney
1 year ago
C) making loans beyond those specified in the partnership agreement
LA
Laurel
1 year ago
B) committing the partnership in any manner
UL
Ula
1 year ago
A) participating in management of the partnership
FA
Fausto
2 years ago
Ah, the joys of partnership law. I'm going with D, no need to tempt fate here.
SH
Shizue
1 year ago
User 3: Yeah, it's best to stick to the agreement.
TR
Trinidad
1 year ago
User 2: Agreed, participating in management can be risky.
EL
Elin
2 years ago
User 1: I think it's D, better safe than sorry.
LA
Lavonna
2 years ago
But if a limited partner participates in management, they could be seen as a general partner and be subject to unlimited liability.
RO
Robt
2 years ago
I disagree, I believe the answer is A) participating in management of the partnership.
LA
Lavonna
2 years ago
I think the answer is D) all of the above.
LU
Lucille
2 years ago
Definitely D, I can't imagine any of those activities being safe for a limited partner. Gotta play it safe, you know?
PA
Pauline
1 year ago
D) all of the above
BR
Brett
2 years ago
C) making loans beyond those specified in the partnership agreement
CA
Cary
2 years ago
B) committing the partnership in any manner
AM
Ammie
2 years ago
A) participating in management of the partnership
HO
Horace
2 years ago
Hmm, I bet the answer is D. I don't want to end up with unlimited liability, that would be a nightmare!