What distinguishes a general partner from a limited partner in terms of liability?

Prepare for the Partnership Law Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

A general partner is distinguished by having personal liability for the debts and obligations of the partnership. This means that if the partnership incurs debt or faces a lawsuit, general partners can be held personally responsible, and their personal assets may be at risk to satisfy those debts. This characteristic is a defining feature of a general partner's role.

On the other hand, limited partners have their liability restricted to the extent of their investment in the partnership. They are not personally liable for the debts of the partnership beyond their initial contribution. This limited liability is a key advantage for limited partners, as it protects their personal assets from the partnership’s liabilities.

Thus, the correct choice highlights the crucial legal distinction concerning liability between general partners, who bear full personal liability, and limited partners, who enjoy protection from personal liability for partnership debts.

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