Question

Charles has been asked to join a new partnership that is developing an office park. He does not want to be liable for the firm’s debts if the project should fail. He could still participate as a:_______.

Answer 1

Answer: Limited partner

Step-by-step explanation:

Charles can join the business as a limited partner as this would make him to be less liable the business loss and he doesn't also have to be always available to run the business. A limited partner is a partner whose role in a company is limited only to the amount of capital they invest in that business, and they are not in charge of running the business.

Answer 2

B. Limited partner

Step-by-step explanation:

A limited partner are partners in a given organization whose liability towards the debt are legally limited to the amount of money they invested. In limited partnership, the partners are only liable to business debts limited to their initial investment. In limited liability, the partners cannot incur debts on behalf of the partnership and he or she is not personally liable to those debts.