Which business is the best example of a limited partnership? (1) Joe and Darrell

Question

Which business is the best example of a limited partnership? (1) Joe and Darrell operate a music studio and are both personally liable for the debts of the business. (2) Ben and Jerry operate an ice cream parlor and are both personally liable for the debts of the business. Susan works in the parlor serving ice cream and is not personally liable for the debts of the business. (3) Michael operates a television repair shop and is personally liable for the debts of the business. Keith gave Michael $50,000 to open the business and now shares in the profits with him. Keith will only be out his $50,000 if the business fails. (4) John owns and operates a furniture store and is personally liable for the debts of the business. Paul works in the store as a sales man and is not personally liable for the debts of the business. Which business is the best example of a limited partnership? (1) Joe and Darrell operate a music studio and are both personally liable for the debts of the business. (2) Ben and Jerry operate an ice cream parlor and are both personally liable for the debts of the business. Susan works in the parlor serving ice cream and is not personally liable for the debts of the business. (3) Michael operates a television repair shop and is personally liable for the debts of the business. Keith gave Michael $50,000 to open the business and now shares in the profits with him. Keith will only be out his $50,000 if the business fails. (4) John owns and operates a furniture store and is personally liable for the debts of the business. Paul works in the store as a sales man and is not personally liable for the debts of the business. (1) Joe and Darrell operate a music studio and are both personally liable for the debts of the business. (2) Ben and Jerry operate an ice cream parlor and are both personally liable for the debts of the business. Susan works in the parlor serving ice cream and is not personally liable for the debts of the business. (3) Michael operates a television repair shop and is personally liable for the debts of the business. Keith gave Michael $50,000 to open the business and now shares in the profits with him. Keith will only be out his $50,000 if the business fails. (4) John owns and operates a furniture store and is personally liable for the debts of the business. Paul works in the store as a sales man and is not personally liable for the debts of the business.

Explanation / Answer

Answer is Option (3) Michael operates a television repair shop and is personally liable for the debts of the business. Keith gave Michael $50,000 to open the business and now shares in the profits with him. Keith will only be out his $50,000 if the business fails limited partnership , two or more persons conduct business jointly but one or more of Partners of above liable only to the extent of money invested by them. In the Option (3) michael and keith are partners and keith liable only to the extent of amount invested by him.

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