Series 7 practice questionmediumAlternative Investments — DPPs
In a limited partnership, the general partner has:
- ALimited liability and no management responsibility
- BUnlimited liability but no management authority
- CLimited liability and full management authority
- DUnlimited liability and full management authority✓ Correct answer
Explanation
Why D — Unlimited liability and full management authority
The general partner manages the day-to-day operations of the limited partnership and bears unlimited personal liability for partnership debts and obligations. Limited partners, in contrast, have liability limited to their investment and cannot participate in management without risking their limited liability status. Every limited partnership must have at least one general partner.
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