Nick is investing $25,000 in a partnership with his sister and brother.Nick does not want to be an active part of the partnership and can only afford to risk the $25,000 he is investing.His brother and sister agree to let him share a proportionate amount of the profits.Nick is a ________ in this partnership.

Question

Quizplus · Accepted Answer

Nick is a limited partner because he is not actively participating in the partnership and can only risk his initial investment. This means he has limited liability for any debts or obligations of the partnership and is only entitled to a proportionate amount of the profits.

Nick Is Investing $25,000 in a Partnership with His Sister