Chris and Paul operate a business in which both have contributed $50,000 to the businesses capitalization.Chris makes all business decisions and Paul made Chris sign a partnership agreement saying that Paul is only liable for partnership debts up to $50,000.

Question

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Chris is making all business decisions, indicating that he has control over the partnership and is therefore a general partner. Paul, on the other hand, has limited liability, indicating that he is a limited partner. Additionally, the fact that Paul can only be liable for up to $50,000, which is the same amount that both partners contributed to the capitalization, suggests that he is a limited partner. Therefore, B is the best choice.

Chris and Paul Operate a Business in Which Both Have