Question

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.

Answer 1

Answer:

c. limited partner.

Explanation:

In the presented scenario, Logan Nettles should become a limited partner.

Limited partner is the partnership in which one  limited partner is been required compulsory. This is slightly different from general partnership. In this profit of the business is limited and the debt and dis-advantage on the amount of investment is also limited.

So we can see that Logan is also concerned about his disadvantage which is known as liability.