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16 September, 11:43

Emma Pebble and Chase Stone formed a partnership in a landscape business. Under their arrangement, Emma actively manages the company and assumes unlimited liability for the firm's debts. Chase has invested several thousand dollars of his money with plans to share in the profits, but does not actively make management decisions, nor will he assume liability beyond his initial investment. Emma and Chase participate in a limited partnership.

A. True

B. False.

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  1. 16 September, 11:47
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    Answer:True

    Explanation:A limited partnership is a form of partnership business between two or more patners in which the major partner which is the general patner has controllable interests in the running of the business and making the managerial decision while the other partner (s), which is the limited partner has only a limited liability equating to the amount invested by him/her. But in the case of the general partner, he/she has unlimited liability of the business debt. Also, the limited partner (s) core&only objective is just about making profit/returns of his/her own initial investment.

    So in the case of Emma Pebble and Chase Stone, Emma is the general partner who actively takes part in the running of the business, thus bearing the major risks&liablities, while Chase is the limited partner whose only interest is to partake in profits from his initial investment.
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