| Front | A general partner in a limited partnership is personally liable to third parties and is typically liable to the partnership, as well.What kind of partner would take on this kind of liability? |
| Back | Although the general partner in a limited partnership has unlimited liability, the typical general partner is an entity such as a corporation that has its own liability shield. |
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| Front | What rights to distribution does a partner have in a limited partnership if those rights are not specified in the partnership agreement? |
| Back | If a partner's rights to distribution are not specified in a limited partnership's agreement, then a partner does not have a right to receive a distribution before withdrawal or dissolution of the partnership. [Upon withdrawal or dissolution, the partner has the right to receive a distribution of the fair value of his interest, as measured on the date of withdrawal.] |
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| Front | A partnership can be contractually bound when a partner acts with either actual or apparent authority.How can a partnership escape liability when a partner acts with apparent authority? |
| Back | For a partnership to escape liability, the third party generally must possess actual knowledge of the partner's lack of actual authority. |
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