Jerry and Jane want to start a clothing business. Jane wants to invest without the risk of unlimited liability, and Jerry is more interested in actively managing the store. Which of the following situations would suit them?
A) A general partnership because it is easy to form and would help them save the money spent on taxes
B) A limited partnership with Jerry as the general partner and Jane as the limited partner
C) A limited partnership with Jane as the general partner and Jerry as the limited partner
D) A limited liability partnership so that even Jane is compelled to manage the business and not just concentrate on designing the clothes
Correct Answer:
Verified
Q127: In a limited partnership,:
A) general partners cannot
Q128: Which of the following is NOT a
Q129: Cathy and Denise open a business as
Q130: The default tax classification for limited liability
Q131: Suzanne was recently elected to the board
Q133: John is a partner in Mike's Motorcycles
Q134: Which of the following statements is true
Q135: In a limited partnership, the limited partner:
A)
Q136: A _ is a legal business entity
Q137: A _ allows all partners to participate
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