Question

decision point: know your responsibilities
if you choose to enter into a limited partnership with larry, which of the following would be true with respect to responsibility for debts of the partnership?
select an option from the choices below and click submit.
you and larry will be proportionally responsible for the debts of the business, depending on how much money each of you invested in the business.
you and larry will be equally responsible for the debts of the business, regardless of how much money each of you invested in the business or who incurred the debt.
because you have a formal partnership agreement with larry, neither of you is personally responsible for the debts of the business.
you are personally responsible for all of the debts of the business. larry is responsible for debts only to the extent of his investment.

Explanation:

In a limited partnership, the general partner (you in this case) has unlimited personal liability for the partnership's debts. The limited partner (Larry) is only liable up to the amount of their investment.

Answer:

You are personally responsible for all of the debts of the business. Larry is responsible for debts only to the extent of his investment.