What is a potential outcome for a limited partner upon liquidation of the partnership?

In a limited partnership, a limited partner's liability is generally limited to the amount they have invested in the partnership. This characteristic allows limited partners to invest in the partnership without the risk of losing more than their initial contribution. Upon liquidation of the partnership, the limited partner receives distributions in accordance with their ownership interest, which are typically based on the remaining assets after all debts and obligations have been satisfied.

The potential outcome of receiving the full amount of their original investment aligns with the principle of limited liability, which protects limited partners from any losses beyond their initial contribution. However, it is important to note that if the partnership has significant debts, limited partners may not receive their full investment back if the partnership's assets are insufficient to cover these obligations.

Consequently, the answer choice reflecting the return of the full original investment underscores the safety net that limited partners have when investing, barring any operational losses incurred by the partnership itself.