Karl Metzger plans to invest $5,000 in a partnership with his brother to produce and sell handcrafted violins, zithers, and other string instruments. Metzger does not plan to work in the business and wants no more liability than his investment. What should he be?
A) limited partner
B) general partner
C) joint partner
D) temporary partner

Question

Quizplus · Accepted Answer

A limited partner is a partner in a partnership who has no management authority and limited liability. This means that they have no say in the day-to-day operations of the business but also have limited liability, which means they are only liable for the amount of their investment. This is the best choice for Karl Metzger as he does not plan to work in the business and wants no more liability than his investment of $5,000.

Karl Metzger Plans to Invest $5,000 in a Partnership with His