Beau has agreed to invest $19,000 in a partnership with his brother and sister-in-law. Not being in the same line of work as them, Beau does not intend to actively work in the partnership. He also does not want to risk any of his own assets other than the $19,000 investment. The partnership has agreed to permit him to share in the profits. As an expert on forms of business ownership, you know that Beau is a ________ in this partnership.
A) general partner
B) preferred stockholder
C) secondary partner
D) limited partner

Question

Quizplus · Accepted Answer

A limited partner invests in a partnership, but has limited liability and does not take an active role in managing the business.

Beau Has Agreed to Invest $19,000 in a Partnership with His