Certified Residential Appraiser Practice Exam

What distinguishes a General Partner in a Limited Partnership?

1. Limited liability for all partners

2. Complete operational control and unlimited liability

3. Access to shared time in property

4. A single owner with no partners

The correct answer is: Complete operational control and unlimited liability

A General Partner in a Limited Partnership is characterized by having complete operational control and unlimited liability. This means that the General Partner is responsible for managing the day-to-day operations of the partnership and has the authority to make decisions regarding the business. Unlike limited partners, who typically have their liability restricted to the amount of their investment and do not partake in management activities, General Partners can be personally liable for the debts and obligations of the partnership. This dual role—having management authority while facing unlimited liability—is what distinctly separates a General Partner from other types of partners within the structure of a Limited Partnership. The other options presented do not accurately depict the role or the responsibilities associated with being a General Partner. For example, limited partners enjoy limited liability and do not possess operational control, which emphasizes the unique position of General Partners in this context.