Matisse and Oliver own an antique furniture business. They are in a form of partnership where Oliver is only a dormant partner who contributes financially to the business, whereas Matisse actively manages the business and takes care of imports and exports. Matisse and Oliver are bound by an agreement where, unlike Oliver, Matisse is personally responsible for all the debts incurred by the business. In the given scenario, Matisse and Oliver have a _____.

Question

Quizplus · Accepted Answer

In a limited partnership, there is at least one general partner who manages the business and is personally liable for debts (Matisse), and one or more limited partners who contribute financially but do not manage the business and have limited liability (Oliver).

Matisse and Oliver Own an Antique Furniture Business