One way to eliminate some of the risk of your partners making costly mistakes that could jeopardize your personal assets is to set up a:
A) Master Limited Partnership.
B) sole proprietorship.
C) limited amount of time each can actively spend in the business.
D) limited liability partnership.

Question

Quizplus · Accepted Answer

A limited liability partnership (LLP) allows for limited personal liability for the actions of other partners. This means that if one partner makes a costly mistake, the personal assets of the other partners are not at risk. A sole proprietorship offers no liability protection, and while a Master Limited Partnership allows for limited liability, it is a more complex business structure than an LLP. Limiting the amount of time each partner can actively spend in the business may not necessarily mitigate the risk of costly mistakes.

One Way to Eliminate Some of the Risk of Your