In a limited partnership,limited partners:

A) play an active role in the management of the firm.
B) do not pay federal income tax on their share of the profits.
C) are passive investors.
D) have unlimited liability for the firm's debts.

Limited Partners

Investors in a partnership who have limited liability to the extent of their investment and are not involved in day-to-day management decisions.

Limited Partnership

A partnership where at least one partner has limited liability for the debts of the business, while at least one other has full liability.