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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