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1. What are the characteristics of a limited partner?(1)Formed by compliance with the statutoryrequirements(2)One or more general partners control the business and are personally liable tocreditors(3)One or more limited partners contribute to the capital and share in the profits butdo not participate in the management of the business and are not personally liable for partnership obligations beyond their capital contributions(4)Limited partners may ask for the return of their capital contributions under the conditions prescribed by law2. Give the cases when a limited partner is liable as a general partner.A limited partner is liable as a general partner forthe firm’s obligations if he becomes involved in the management of the firm’s business.
3. Give at least four differences between a general partner and limited partner.LiabilityGP – Personally liable for partnership obligationsLP – Extends only to his capital contributionManagementGP – Equal right in the management of the businessWhether or not has made any capital contributionLP – Has no share in the managementRights limited to Article 1851ContributionGP – Money, property, industryLP – Cash or property not servicesProhibitionGP – Prohibited from engaging in the same kind of partnership business if he is a capitalist partner or any business for himself if an industrialist partnerLP – No prohibition who is considered as a merecontribution to the partnership4. What conditions must exist before the contribution of a limited partner may be returned to him?5. Give at least four specific rights of a limited partner.(1)To require that the partnership books be kept at the principal place of business ofthe partnership(2)To inspect and copy at a reasonable hour partnership books or any of them(3)To demand true and full info of all things affecting the partnership(4)To demand a formal account of partnership affairs whenever circumstances render it just and reasonable(5)To ask for dissolution and winding up by decree of court(6)To receive a share of the profits or other compensation by way of income(7)To receive the return of his contribution, provided the partnership assets in excess of all its liabilities.