- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 1. Alternative Investment Features, Methods, and Structures
- Subject 3. Investment and Compensation Structures
CFA Practice Question
Which party has unlimited liability for the debt of a limited partnership? I. The general partner (GP)
II. The limited partners (LPs)
III. Both GP and LPs
Correct Answer: I
The limited partners are only liable up to the amount of their investment. They have little to no involvement in management The general partner has unlimited liability.
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