"Sheng's Designs" is an architectural firm owned by four investors but Sheng is the only one who handles the day-to-day business management of the firm. They share their profits, but their losses are restricted to the amount invested by each. This is an example of a _____.

Question

Quizplus · Accepted Answer

This scenario describes a limited partnership where there are multiple investors but only one person manages the business operations. The profits are shared among the partners, but they are only liable for the amount of their investment, thus limiting their liability.

"Sheng's Designs" Is an Architectural Firm Owned by Four Investors