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Chloe and Tamara Start a Vintage Fashion Boutique

Question 27

Multiple Choice

Chloe and Tamara start a vintage fashion boutique. While both invest equally in the store and are entitled to equal profits, it is Tamara who looks after the day-to-day business transactions and manages the store. Chloe does not actively participate in managing the store, and her personal wealth is not at risk in case the business suffers losses. In this scenario, Chloe is a _____.


A) general partner
B) limited partner
C) common stockholder
D) preferred stockholder

Correct Answer:

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