Asked by
Nangamso Cokoto
on Nov 21, 2024
Verified
Which statement is true regarding James's entitlement to sue on behalf of the partnership?
A) If the general partners fail to bring a suit on behalf of the limited partnership, the limited partner can bring the suit.
B) If the general partners fail to bring a suit on behalf of the limited partnership, the limited partner can bring suit but only after obtaining the permission of all general partners.
C) If the general partners fail to bring a suit on behalf of the limited partnership, the limited partner can bring suit but only after obtaining the permission of a majority of the general partners.
D) A limited partner has no rights to bring suit on behalf of the partnership.
E) A limited partner has a right to bring suit on behalf of the partnership only if the litigation is in an amount of over $75,000 and then only with the permission of all general partners.
Limited Partner
An investor in a partnership who has limited liability to the extent of their investment in the partnership and does not actively manage the business.
Sue
A legal action where an individual or entity brings a lawsuit against another in a court of law.
- Distinguish between general and limited partners' roles, rights, and obligations.
Verified Answer
VV
Learning Objectives
- Distinguish between general and limited partners' roles, rights, and obligations.
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