John and George have been talking about going into business together.John wants the business as an investment and has the money necessary to set it up,but wants no responsibility and little liability.On the other hand,George wants to run the business and is prepared to accept the liability that goes with it.In this case,the agreement that John and George will enter into to do business together is

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The situation described is a classic example of a limited partnership, where John is the silent partner providing the investment and George is the active partner assuming responsibility for the daily operations of the business. The limited partnership agreement will outline the respective roles and liabilities of each partner in the business.

John and George Have Been Talking About Going into Business