An investor has $50,000 to invest as a limited partner in a partnership.The individual will be one of several limited partners in the business.The business is not expected to make a profit for at least three years.Why has the investor most likely chosen to invest in this business?
A) The investor will be guaranteed to receive the $50,000 back if the venture fails.
B) The flow-through of losses is an important tax consideration for the investor.
C) The investor plans to use his/her management expertise in the business in order to generate profits.
D) The investor is attracted to the concept of unlimited liability.
Correct Answer:
Verified
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