Question

Which type of partnership should Adam and Donna choose?

Adam and Donna have started their own business of making customized cell phone cases. However, Adam is also involved in another business and is not be able to dedicate time to the new business. He is willing to fund the business but is not able to help Donna in the daily operations.
Donna suggests that they follow the ____ partnership business structure.​

Answer 1

The suggestion from Donna would be Limited Partnership business structure.

Step-by-step explanation:

Limited Partnership is the type of partnership where the business entities are authorised by the state. In this partnership, there is atleast one general partner who is involved in the day-to-day running of the business while the other partner(s) provides money but do not contribute towards the day-to-day running.

This is the most common for partners who only want financial returns in a business rather than being bugged down with the debts and liabilities associated with the business.