(b) That's wrong. The essential requirement for a limited partner's limited liability is that they do not take any part in the management of the firm's business. If they do, they immediately become liable as if they were a general partner for any liabilities incurred by the business while they were taking part in its management.

However there are certain things that a limited partner can do that do not count as 'taking part in the management of the business of the firm'. For example, a limited partner can do the following things without losing their limited liability:

• Work for the firm as an employee or as an independent contractor
• Enforce their rights as limited partners in the firm
• Participate in general meetings of all the partners
• Inspect the partnership books - Examine and advise on the state of the partnership business.