Which action is permitted for a limited partner regarding their claims against the partnership?

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

In the context of partnerships, particularly when distinguishing between general and limited partners, it is essential to understand the roles and protections afforded to limited partners. A limited partner is typically not involved in the day-to-day management of the partnership and their liability is limited to their investment in the partnership.

Receiving collateral for their investments aligns with the limited partner's rights, especially as a form of security in case of default or unmet obligations by the partnership. This option implies that limited partners can safeguard their financial contributions, which is not only a common business practice but is also often part of the investment agreement in limited partnerships.

The other options present actions that either contradict the role of a limited partner or do not typically fall within their rights. For instance, transacting business with the partnership could lead to the limited partner being classified as a general partner, which would increase their liability. Accessing partnership records is allowed but is usually contingent on reasonable notice rather than at any time, limiting that right. Directly influencing management decisions contradicts the very nature of a limited partner's role since their participation in management can jeopardize their limited liability status.

Therefore, receiving collateral for their investments is the action permitted for a limited partner concerning their claims against the partnership.

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