Rhonda has agreed to invest $16,000 in a partnership with her sister and brother-in-law.Rhonda does not plan to work in the partnership,nor does she wish to risk any of her own wealth other than the $16,000 she invests,but she does intend to share in any profits earned by the partnership.Evidently,Rhonda will be a:
A)restricted partner.
B)preferred stockholder.
C)secondary partner.
D)limited partner.

Question

Quizplus · Accepted Answer

Rhonda will be a limited partner, as she is not involved in the management of the partnership and has limited liability beyond her initial investment.

Rhonda Has Agreed to Invest $16,000 in a Partnership with Her