Is it permissible for a limited partner to assign their interest to another person?

A limited partner has the right to assign their interest in the partnership to another person without needing the consent of the other partners, as long as the partnership agreement does not specifically restrict this right. In most partnership structures, including limited partnerships, a limited partner's interest is generally considered personal property that they can transfer or assign as they see fit. This flexibility is advantageous for limited partners, who typically invest capital into the business but do not participate in the management.

However, it is important to note that while the limited partner can assign their interest, the assignee may not automatically become a limited partner or gain any rights beyond those of an economic interest holder unless the partnership agreement allows for such an admission. This ensures that the control and management of the partnership can stay intact and is not disrupted by the assignment of interests.

In contrast to the correct answer, the other options imply various levels of restriction on the limited partner's ability to assign their interest, which do not align with general principles governing limited partnerships unless specifically stated in the partnership agreement.