An investor has $50,000 to invest as a limited partner in a partnership. The individual will be one of several limited partners in the business. The business is not expected to make a profit for at least three years. Why has the investor most likely chosen to invest in this business?
A) The flow-through of losses is an important issue for the investor.
B) The investor plans to use his/her management expertise in the business in order to generate profits.
C) The investor will be guaranteed to receive the $50,000 back if the venture fails.
D) None of the above. An investor would never choose to invest in such a business.
Correct Answer:
Verified
Q1: Wayne and Wendy are equal partners in
Q3: Steven invested $25,000 as a limited partner
Q4: Teresa White is one of 5 equal
Q4: A friend of yours is considering entering
Q6: Three Hills Partnership had profits of $210,000
Q7: Jerome has a 10% interest in a
Q8: While partnerships and joint ventures have some
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents