Beau has agreed to invest $19,000 in a partnership with his brother and sister-i

Question

Beau has agreed to invest $19,000 in a partnership with his brother and sister-in-law. Not being in the same line of work as them, Beau does not intend to actively work in the partnership. He also does not want to risk any of his own assets other than the $19,000 investment. The partnership has agreed to permit him to share in the profits. As an expert on forms of business ownership, you know that Beau is a __________ in this partnership.

Multiple Choice

general partner

preferred stockholder

secondary partner

limited partner

Explanation / Answer

According to the given case, Beau is a limited partner in this partnership as he is limiting his investment and also he is not actively participate in managing the business too.

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