When it comes to decision making, in a limited partnership there is no separation of ownership and control limited partners have no control over business decisions limited partners have an equal say, but no liability the partners have control based on invested capital. True or false?

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Business

Kinsley Franklin

26 February, 21:14

When it comes to decision making, in a limited partnership there is no separation of ownership and control limited partners have no control over business decisions limited partners have an equal say, but no liability the partners have control based on invested capital. True or false?

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Bullwinkle · Answer 1

yes, there is no separation between the administration and ownership in a partnership.

the partnership contract stipulates which partners have the decision making ability and which partners don't. We cannot say specifically that limited partners have no say in decision making.

Moreover, the control of the partnership is not based on the amount invested like in corporations. that too is based on the contract. however, in practice, yes if you have more money invested in the business, you have more influence.