Florida Contractor Practice Exam

Which of the following is NOT characteristic of a General and Limited Partnership?

1. The limited partnership has two types of partners; a partnership only one.

2. The general partners of a limited partnership have limited personal liability.

3. In a limited partnership, the limited partners have no management responsibility.

4. The general partner has joint and several liability; the limited partner does not.

The correct answer is: The general partners of a limited partnership have limited personal liability.

In the context of general and limited partnerships, the statement about general partners in a limited partnership having limited personal liability is not accurate, thus indicating it is not characteristic of such partnerships. In a limited partnership, general partners are responsible for the management and have unlimited personal liability for the debts and obligations of the partnership. This means that their personal assets can be targeted to satisfy business debts. In contrast, limited partners, while they contribute to the partnership and typically share in profits, do not participate in day-to-day management and their liability is limited to the amount they have invested in the partnership. This distinction highlights the different levels of risk borne by the two types of partners, leading to the understanding that the responsibility and liability vary based on the role within the partnership structure. The other characteristics presented all align with established definitions of general and limited partnerships, reinforcing the correct identification of the statement that does not fit this context.