What is the liability of a substituted limited partner for their assignor's obligations?

In a limited partnership, when a limited partner assigns their partnership interest to a substituted limited partner, the liability of the substituted limited partner for the assignor's obligations is indeed based on the principle that they assume responsibilities related to the partnership. This means that the substituted limited partner may be held liable for obligations incurred by the partnership up to the amount of their investment in the partnership but not exceeding that.

The idea behind this is that when a new partner steps into the shoes of the assignor, they take on certain responsibilities that are tied to the partnership’s agreements. This liability is distinct from personal liability that a general partner might face, as limited partners generally have limited liability to the extent of their investment. Thus, the correct choice highlights that a substituted limited partner does have liabilities regarding the prior obligations of their assignor, maintaining the continuity of responsibility within the partnership framework.

The other options do not apply in this context: assets pertain to what the partnership owns, equity refers to ownership interest and is not indicative of obligations, and stating "none of the above" fails to recognize the substituted limited partner's assumed liabilities.