Travis has agreed to invest $16,000 in a partnership with his sister and brother-in-law. He does not intend to actively work in the partnership, nor does he wish to risk any of his own assets other than the $16,000 he initially invests. The partnership has agreed to permit him to share in the profits. As an expert on forms of business ownership, you know that Travis is a ______________ in this partnership.
A) general partner
B) preferred stockholder
C) secondary partner
D) limited partner

Question

Quizplus · Accepted Answer

Travis is a limited partner in this partnership. Limited partners are investors who contribute capital towards the partnership but do not take an active role in its management or operations. They have limited liability and are only liable for the amount they have invested in the partnership. In addition, they share in the partnership's profits but typically do not have the ability to make decisions on behalf of the partnership.

Travis Has Agreed to Invest $16,000 in a Partnership with His