Commerce WAEC

In a limited partnership, one of the members must be?

A. a general partner
B. a nominal partner
C. an active partner
D. a dormant partner

Correct Answer: Option A

A. a general partner

Explanation

Limited partnerships are formed by two or more people, with at least one person acting as the general partner who has management authority and personal liability, and at least one person in the role of limited partner who is a passive investor with no management authority. All partners – both general and limited – must enter into limited partnership by either oral or written agreement.

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