In a Limited Partnership, which statement about limited partners is true regarding liability and management control?

• A. General partners have no liability over management.
• B. Limited partners are usually financially liable for debts only to the extent of their investment and have limited or no control over management.
• C. Limited partners manage day-to-day operations.
• D. They have unlimited liability.

Answer: (B)

In a Limited Partnership, limited partners contribute capital and have liability limited to their investment, while management is typically left to general partners. This means limited partners are protected from personal liability beyond what they invested and usually do not run the day-to-day operations. If they did take part in managing, they could risk losing that limited liability protection and be treated as general partners. The option that accurately describes this setup states that limited partners are usually financially liable only up to their investment and have limited or no control over management. The other descriptions conflict with how limited partners are paired with general partners: general partners bear liability and manage, while limited partners generally do not.