Joe is deciding whether or not to invest $10,000 in a business that has pending lawsuits against it.If Joe invests and the business loses the lawsuits,the most Joe can lose is
A) $10,000 if Joe is a general partner.
B) $10,000 if Joe is a sole proprietor.
C) $10,000 if Joe is a limited partner.
D) $10,000 plus his share of the lawsuits if Joe is a limited partner.

Question

Quizplus · Accepted Answer

As a limited partner, the most Joe can lose is the amount of his investment, which is $10,000. He is not personally liable for any additional debts or liabilities of the business beyond his investment.

Joe Is Deciding Whether or Not to Invest $10,000 in a Business