Thom Georges wants to open a store to sell antique architectural features that he can salvage from old houses being torn down. 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 company equal to but no greater than their investment. Georges is trying to get them to form which of the following?
A) limited partnership
B) joint venture
C) cooperative
D) general partnership

Question

Quizplus · Accepted Answer

A limited partnership is a type of business entity in which there is at least one general partner who has unlimited liability for the partnership's debts and at least one limited partner who has limited liability (no greater than their investment). This option fits Thom Georges' plan because he is asking his parents to invest a specific amount of money and have limited liability in the company.

Thom Georges Wants to Open a Store to Sell Antique