Question

Mark for follow up Question 21 of 75. Which business is the best example of a limited partnership? O Joe and Darryl operate a music studio and are both personally liable for the debts of the business. O Ken and Sherry operate an ice cream parlor and are both personally liable for the debts of the business. Susan works in the O Michael operates a television repair shop and is personally liable for the debts of the business. Keith gave Michael $50,000 to parlor serving ice cream and is not personally liable for the debts of the business. open the business and now shares in the profits with him. Keith will only be out his $50,000 if the business fails.

Answer 1

Ans c) Michael operates a television repair shop and is personally liable for debts of business. Keith gave michael $50,000 to open business and now shares in the profits with him. Keith will only be out his $50,000 if the business falls

A limited partnership exist when two or more person comes together to form business where one or more partner is liable only to the extent money invested by him. Here Keith is liable only to extent of $50,000 invested by him hence his liability is limited. Thus this is Limited liability partnership