Chuck Borris invested $250,000 for a limited partnership share in Kong-Foo, a company that distributes antique furniture. Which of the following statements is correct?

A. Chuck has unlimited personal liability for the debts of the partnership.
B. Chuck may participate in management of Kong-Foo without losing his limited liability.
C. Chuck's liability for partnership debts is limited to $250,000.
D. Chuck is not liable for any amount owed to creditors if he does not contribute services to the partnership.

Answer: C. Chuck's liability for partnership debts is limited to $250,000.

Business

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