Which of the following does not belong to the limited partner's contributions?

Prepare for your Partnership and Corporation Exam with engaging flashcards and multiple-choice questions. Each question comes with hints and detailed explanations. Boost your confidence and ace the exam!

In a limited partnership, a limited partner's contributions typically consist of capital, meaning they provide financial resources to the partnership without being actively involved in its daily management. This arrangement is designed to limit their liability to the extent of their investment.

The contributions that a limited partner can make are generally financial in nature, such as cash or property. However, time and services do not constitute acceptable contributions for a limited partner. Limited partners may not be involved in management decisions or provide services, as this could expose them to greater liability and possibly reclassify their status to that of a general partner, which would eliminate the limited nature of their liability.

Therefore, contributions in the form of time and services are not permitted. This makes the distinction clear that limited partners are primarily investors rather than active participants in the operations of the partnership. The correct answer highlights that services, which imply active involvement, are not an allowed contribution for limited partners.

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