Thom Georges wants to open a store to sell antique architectural features that he can salvage from old houses being torn down.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.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 which of the following?
A) a limited partnership
B) a joint venture
C) a cooperative
D) a general partnership

Question

Quizplus · Accepted Answer

A limited partnership would be the most appropriate option in this scenario. The investor (parents in this case) would be limited partners and would have limited liability equal to their investment. Georges, on the other hand, would be the general partner, responsible for running the business and making decisions. This structure would allow the Georges to bring in investors without exposing them to unlimited liability, while also giving them flexibility in management and decision-making.

Thom Georges Wants to Open a Store to Sell Antique