A limited partner would be in jeopardy of losing her limited liability if the partner:

A limited partner would be in jeopardy of losing her limited liability if the partner:

• A. Received a portion of the project's income and deductions
• B. Assisted in the decision of which properties to acquire
• C. Insisted on examining the partnership's financial records
• D. Made a loan to the partnership

Answer: (B)

A limited partner typically enjoys limited liability, meaning they are only at risk for the amount of their investment in the partnership and are not personally liable for the partnership's debts. However, this limited liability can be compromised if the limited partner engages in activities that suggest they are participating in the management or control of the partnership. Assisting in the decision of which properties to acquire is considered a significant management activity. When a limited partner takes on such responsibilities, it can blur the line between a passive investor and an active participant in the partnership's operations. By stepping into a management role, the limited partner may lose their limited liability status, making them potentially liable for the debts and obligations of the partnership. In contrast, receiving income and deductions relates to the standard financial distributions that a limited partner would expect without affecting their liability status. Similarly, examining financial records and making a loan to the partnership are actions that do not typically equate to management participation and therefore do not jeopardize the limited liability of the partner.

A limited partner typically enjoys limited liability, meaning they are only at risk for the amount of their investment in the partnership and are not personally liable for the partnership's debts. However, this limited liability can be compromised if the limited partner engages in activities that suggest they are participating in the management or control of the partnership.

Assisting in the decision of which properties to acquire is considered a significant management activity. When a limited partner takes on such responsibilities, it can blur the line between a passive investor and an active participant in the partnership's operations. By stepping into a management role, the limited partner may lose their limited liability status, making them potentially liable for the debts and obligations of the partnership.

In contrast, receiving income and deductions relates to the standard financial distributions that a limited partner would expect without affecting their liability status. Similarly, examining financial records and making a loan to the partnership are actions that do not typically equate to management participation and therefore do not jeopardize the limited liability of the partner.