Croutakie seemed like a great idea.Chef Leo Nyami and Sara Rice decided to take advantage of the popularity of shitake mushrooms and create some shitake mushrooms products that could be sold to restaurant patrons and other gourmets through their new company.The mushrooms are expensive, and there were other unexpected financial problems, so Nyami and Rice asked Bill Ng to become a limited partner.This means that Ng:
A)is limited in the number of hours he can work each month
B)is limited in the amount he can invest
C)qualifies for a limited income tax rate
D)agrees not to participate in day-to-day management of the firm
E)agrees to limit his expertise to a certain area, such as finance or marketing

Question

Quizplus · Accepted Answer

Limited partners, like Bill Ng in this scenario, are investors in a partnership who are not involved in the daily operations of the business. Their liability is limited to the amount of their investment.

Croutakie Seemed Like a Great Idea