Tania starts a bookstore with her friend. However, owing to other commitments, Tania is unable to help with the daily operations of the bookstore. Therefore, Tania proposes that she would not actively participate in managing the business but would provide financial support to the business. By doing this, she would be sharing the profits equally with her friend, without incurring any of the business debts personally. In this scenario, Tania is a(n) _____.

Question

Quizplus · Accepted Answer

Tania is a limited partner because she provides financial support without participating in management and is not personally liable for business debts.

Tania Starts a Bookstore with Her Friend