An investor has $50,000 to invest as a limited partner in a partnership. The individual will be one of several limited partners in the business. The business is not expected to make a profit for at least three years. Why has the investor most likely chosen to invest in this business?
A) None of the above. An investor would never choose to invest in such a business.
B) The flow-through of losses is an important issue for the investor.
C) The investor will be guaranteed to receive the $50,000 back if the venture fails.
D) The investor is not in a hurry to recover his/her investment.
Correct Answer:
Verified
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