QUESTION 3

Under a general partnership,

a.

limited partners enjoy limited liability but lose the ability to be involved in the daily operations of the partnership.

b.

the general partner has unlimited liability and must consult with the limited partners on daily operational issues.

c.

each partner's potential loss is limited to his or her investment in the firm but he or she has unlimited say over the daily operations of the partnership.

d.

limited partners control the daily activities of the firm but face unlimited liability for all of the debts of the partnership.

e.

each partner receives only a proportionate share of the profits but is responsible for 100 percent of the partnership debts.

0.5 points