Question on: JAMB Accounting - 2024

A partner whose liability does not extend beyond the amount of capital contributed by him is known as

A

general partner

B

active partner

C

limited partner

D

legal partner

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Correct Option: C

A limited partner is one whose liability is restricted to the amount of capital contributed. Unlike a general partner, a limited partner’s personal assets are not at risk for the debts of the partnership.

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