12 Questions
Which type of partnership is characterized by partners sharing in operating the business and assuming liability for the business debts?
General Partnership
What is the main purpose of a limited partnership?
To provide capital on which a return is expected
What makes a Master Limited Partnership (MLP) different from a corporation?
It avoids corporate income tax
In a limited liability partnership (LLP), what do partners risk losing due to their own acts and omissions?
Their personal assets
What type of partnership was created to limit the disadvantage of unlimited liability?
Limited Liability Partnership
Which type of partnership allows certain partners to be liable only for the amount of their investment?
Limited Partnership
What type of partner in a partnership has unlimited liability and actively participates in managing the firm?
General partner
Which type of partner in a partnership may be known by the public as an owner but does not actively participate in the management of the business?
Silent partner
What type of partner in a partnership has invested in the business but does not have any management responsibility or liability for losses beyond the investment?
Limited partner
Which type of partner in a partnership takes an active part in the management of the business but is unknown to the public?
Secret partner
In a partnership, which type of partner only shares from the profit or losses based on their contribution to the business and does not take part in the management?
Sleeping partner
What type of partner in a partnership lends their name to the business, does not contribute capital, and has no right to participate in the management?
Nominal partner
Test your knowledge about the different types of partnership based on the liability of partners, including general partnership where all owners share in operating the business, and limited partnership where certain partners are liable only for the amount of their investment.
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