Refer to Fact Pattern 13-1. Jeanette wants to exercise sole managerial control over her business but she does not have enough money to set the business up. Several members of Jeanette's family are willing to invest in her business because they think it will succeed. Richard may suggest that Jeanette establish which type of organization?

Question

Quizplus · Accepted Answer

A limited partnership would be the best choice for Jeanette, as she can act as the general partner and maintain sole managerial control while her family members can invest as limited partners and have limited liability. This would allow Jeanette to raise the necessary funds without sacrificing her desired level of control.