The liability of a limited partner is limited to the amount he or she has put into the partnership.Group of answer choicesTrueFalse

Analysis of the Statement

1. Understanding Limited Partnerships: In a limited partnership, there are two types of partners: general partners and limited partners. General partners manage the business and are personally liable for the debts of the partnership, while limited partners typically contribute capital and their liability is limited to their investment.

2. Liability of Limited Partners: The statement claims that "the liability of a limited partner is limited to the amount he or she has put into the partnership." This is a defining characteristic of limited partners; they risk only the capital they have invested in the partnership.

Conclusion

The statement is indeed accurate. In a limited partnership, the liability of a limited partner is capped at their investment in the partnership. Hence, the correct answer is:

Final Answer

True.