Carl and Christine decided to open a small food joint together by investing capital and sharing the profits. However, Christine chose not to participate in the day to day activities of the food joint and Carl was singularly liable to any losses that their food joint made. It can be said that a _____ was formed by Carl and Christine.

Question

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In a limited partnership, there are general partners who manage the business and are liable for its debts, and limited partners who invest capital but do not participate in management and have limited liability. Here, Carl is the general partner, and Christine is the limited partner.

Carl and Christine Decided to Open a Small Food Joint