SIE practice questioneasyDPPs — General Partner Role
The general partner in a limited partnership is responsible for:
- AServing as a silent investor with no management role
- BProviding all of the capital and receiving limited returns
- CGuaranteeing a minimum return to limited partners
- DManaging the day-to-day operations of the partnership and bearing unlimited liability✓ Correct answer
Explanation
Why D — Managing the day-to-day operations of the partnership and bearing unlimited liability
The general partner (GP) manages the partnership's operations, makes business decisions, and has UNLIMITED liability for partnership debts and obligations. Limited partners contribute capital but do NOT participate in management (C describes limited partners). The GP typically contributes a small percentage of capital (1-5%) but receives management fees and a share of profits (carried interest).
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