Primary Market
In a limited partnership, which party has unlimited liability for the debts and obligations of the partnership?
General partner = unlimited liability + management. Limited partner = limited liability, passive.
Complete Analysis & Legal Rationale
The general partner in a limited partnership has unlimited liability, meaning they are personally responsible for all partnership debts and obligations. Limited partners risk only their capital contributions and have no personal liability beyond that.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Limited partners have limited liability - only their investment is at risk.
Matches the verified teaching point in the explanation.
Liability is not equal; general partners have unlimited, limited partners have limited.
General partners do have unlimited liability by definition.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.