Travis has agreed to invest $16,000 in a partnership with his sister and brother-in-law. He does not intend to actively work in the partnership, nor does he wish to risk any of his own assets other than the $16,000 he initially invests. The partnership has agreed to permit him to share in the profits. As an expert on forms of business ownership, you know that Travis is a in this partnership.
A)General partner
B) Preferred stockholder
C) Secondary partner
D)Limited partner

Question

Quizplus · Accepted Answer

As Travis does not intend to actively work in the partnership and does not wish to risk any of his own assets other than the initial investment, he fits the criteria of a limited partner. Limited partners are investors in a partnership who do not participate in the management of the business and are only liable for the amount of their investment. They also share in the profits of the business, as mentioned in the scenario.

Travis Has Agreed to Invest $16,000 in a Partnership with His