Maya plans to open a shop specializing in foods and cultural items from the Middle East.She wants to be the firm's only general partner,but she is trying to get several friends to participate as limited partners.Apparently Maya wants to:
A)Limit her personal liability to the amount she personally invests in the company.
B)Keep all of the firm's profits.
C)Obtain a strong financial base for the firm while maintaining personal control over the firm's management.
D)Meet the legal requirements of the Uniform Partnership Act.

Question

Quizplus · Accepted Answer

Maya wants to obtain a strong financial base for the firm while maintaining personal control over the firm's management, which is typical of a general partner in a limited partnership. By bringing in several limited partners, she can raise capital for the business without having to give up control. Limiting personal liability (A) and meeting legal requirements (D) are also important considerations, but they are not the primary reason why Maya wants limited partners. Keeping all of the firm's profits (B) is not realistic or fair to the limited partners who are also investing in the business.

Maya Plans to Open a Shop Specializing in Foods and Cultural