Which statement is true about General Partners in a Limited Partnership?

• A. General Partners are liable for all company activities
• B. General Partners have liability limited to their investment
• C. General Partners are not involved in management
• D. General Partners are not required in a Limited Partnership

Answer: (A)

General partners in a Limited Partnership manage the business and have unlimited personal liability for the partnership’s debts and obligations. That means if the partnership cannot meet its obligations, creditors can go after the general partners’ personal assets in addition to the partnership assets. This characteristic distinguishes general partners from limited partners, who can lose only the capital they invested and do not participate in day-to-day management. The other statements don’t fit: general partners typically are involved in management, a Limited Partnership must have general partners, and their liability is not limited to their investment. Hence, the true statement is that general partners are liable for all company activities.