Thom Georges wants to open a store where he sells nothing but antique architectural features that he can salvage from old houses being torn down to make way for progress.He has an eye for the kind of doors, windows, mantels, and so forth that decorators want, but he does not have all the funding he needs to get started.He has invited his parents to invest $40,000 in the enterprise.He has told them that if they do invest, they would have liabilities in the firm equal to but no greater than their investment.Georges is trying to get them to form a _____ with him.
A)closely-held corporation
B)cooperative
C)general partnership
D)joint venture
E)limited partnership

Question

Quizplus · Accepted Answer

The correct answer is a limited partnership because Thom Georges is offering his parents a chance to invest in his business with the understanding that their liability would be limited to the amount of their investment, which is a characteristic of limited partnerships.

Thom Georges Wants to Open a Store Where He Sells