Sharon,Lois and Sam have just formed a business partnership.Under their arrangement,Sharon will actively manage the company and assume unlimited liability for the firm's debts.Sam and Lois will invest several thousand dollars of their money and will share in the profits,but will not actively manage the firm and will not have liability for losses beyond their initial investment.This describes a limited partnership.

Question

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In a limited partnership, there is at least one general partner with unlimited liability who manages the business, and one or more limited partners who invest money and have limited liability, not participating in management.

Sharon,Lois and Sam Have Just Formed a Business Partnership