One of the advantages of being a limited partner in a real estate investment venture is that you have ____________ liability, which means you are not liable for losses beyond your initial investment.

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19-08-2022
Business

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One of the advantages of being a limited partner in a real estate investment venture is that you have ____________ liability, which means you are not liable for losses beyond your initial investment.

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AnnuG AnnuG · Answer 1 · 2022-08-29T13:00:45+02:00

One of the advantages of being a limited partner in a real estate investment venture is that you have limited liability, which means you are not liable for losses beyond your initial investment.

A limited liability partnership or investment means that the investor will not be liable for any loss beyond her initial investment. That is, their private assets are not at risk in case the firm goes bankrupt.

Publicly listed firms have this limited liability feature, which makes it attractive to investors. The shareholder is entitled to receive the returns from the growth of the firm, but only their investment is subject to liability if the firm fails irrespective of its debt levels.

Limited liability is an important arrangement particularly in sectors that are unpredictable and can face massive losses.

To learn more about the Limited Liability: brainly.com/question/26083315

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