Malcolm starts a cross-fit business.The financing came from a wealthy investor who shares equally in the profits but does not have any operational responsibilities.How is this business legally organized?

Question

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In a limited partnership, there are one or more general partners who manage the business and have unlimited personal liability, and one or more limited partners who contribute capital but have no control over the business and limited liability. In this scenario, the wealthy investor is a limited partner who shares in the profits but has no operational responsibility, while Malcolm is likely the general partner who runs the day-to-day operations of the cross-fit business.

Malcolm Starts a Cross-Fit Business