Logan Nettles approached Kevin Lang about becoming a partner in a firm that destroys environmental waste. While Logan would like to become a partner in the firm, he is concerned about his liability because he has recently inherited a lot of money. In this situation, Logan should become a a. general partner with a majority ownership interest in the business. b. general partner with a minority ownership interest in the business. c. limited partner. d. joint venturist. e. sole proprietor.

Question

Rhett Allison

Business

27 August, 00:35

Logan Nettles approached Kevin Lang about becoming a partner in a firm that destroys environmental waste. While Logan would like to become a partner in the firm, he is concerned about his liability because he has recently inherited a lot of money. In this situation, Logan should become a a. general partner with a majority ownership interest in the business. b. general partner with a minority ownership interest in the business. c. limited partner. d. joint venturist. e. sole proprietor.

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Nataly Johns · Answer 1

Logan should become a "Limited partner"

Explanation:

A limited partnership:

This is where few partners contribute financially and they are liable only to the extent of the amount that they have invested. In simple, limited partners are shielded to the extent of their investment. They cannot participate in management.

Example of Limited partner:

accounting firms Medical partnerships, law firms

Disadvantage:

Less Protection from Excessive Taxation. General Partners' Personal Assets Unprotected. Extensive Documentation Required.