Which individuals have no managerial decision-making power and have liability restricted to the amount of their investment?

Study for the Georgia NASCLA Contractor Test. Use flashcards and multiple choice questions with explanations to prepare effectively. Ensure you're ready to ace your exam!

Limited partners are individuals who invest in a business but do not partake in its day-to-day management or decision-making processes. Their role is primarily as investors, and they provide capital to the business while maintaining a level of liability that is limited to the amount they have invested. This arrangement allows them to enjoy some protection from the business's debts and obligations.

In a limited partnership, the general partners assume full responsibility for the management of the business and are personally liable for the partnership's debts, while limited partners can only lose their investment if the business fails. This distinction makes limited partners appealing to individuals who want to invest in a business without the risks associated with being directly involved in its management or decision-making.

The other listed options, such as general partners, sole proprietors, and silent partners, either have managerial roles or do not enjoy the same degree of liability protection as limited partners. General partners have full control and personal liability, while sole proprietors are personally liable for all business debts. Silent partners may also invest in a business but might still have some level of involvement or liability that does not mirror the limited protections available to limited partners.

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