Four individuals are interested in forming a business.Three of the individuals will be actively involved in the daily operations of the business, while the fourth person is going to invest some capital but not be involved in the daily running of the business.Which of the following forms of organization would be the best choice for this business?

Question

Quizplus · Accepted Answer

A limited partnership allows for one or more partners to have limited liability and not be involved in the day-to-day operations, making it suitable for the investor in this scenario, while the other partners can be general partners involved in the daily management.

Four Individuals Are Interested in Forming a Business