PRC-3 · Chapter 2 · Question 4 of 61
In a specific partnership arrangement, one partner invests capital but takes no part in daily management and has liability restricted to their investment. What is this type of arrangement called?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Limited partnership
Explanation
A limited partnership includes partners who provide capital but have restricted liability and no active management role, unlike general partners.
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