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CFA Level I · CFA Level I Exam · Organizational Forms, Corporate Issuer Features, and Ownership

Compared with a general partnership, a limited partnership most likely:

A limited partnership has at least one general partner with unlimited liability who manages the business, alongside limited partners whose liability is capped at their capital contribution and who are typically passive. In a general partnership, all partners share unlimited liability.

  1. Arequires every partner to manage the firm
  2. Bhas at least one general partner with unlimited liability and limited partners whose liability is cappedCorrect
  3. Cmakes all partners liable only up to the capital they contributed

Explanation

A limited partnership has at least one general partner who manages and bears unlimited liability, plus limited partners who are typically passive and liable only up to their investment. The other options describe a general partnership's management or a feature that applies only to limited partners.

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