Question

Beau has agreed to invest $19,000 in a partnership with his brother and sister-in-law. Not being in the same line of work as them, Beau does not intend to actively work in the partnership. He also does not want to risk any of his own assets other than the $19,000 investment. The partnership has agreed to permit him to share in the profits. As an expert on forms of business ownership, you know that Beau is a __________ in this partnership.

Answer 1

Beau is a limited partner in this partnership.

Step-by-step explanation:

Based on the given information, Beau is a limited partner in this partnership.

A limited partner is a partner who contributes capital to a partnership but does not actively participate in its management or operations. In the scenario described, Beau has agreed to invest $19,000 in the partnership but does not intend to work actively in the business.

As a limited partner, Beau is not personally liable for the partnership's debts beyond his initial investment. This means that his personal assets are not at risk if the partnership fails.

Answer 2

Answer: Limited partner

Explanation: A limited partner is that partner in the partnership who have limited liability to the extent of his or her investment in the business also he or she receives limited share from the profits of the entity. In this case Beau has liability to the extent of $19000 which is the amount of his investment in the entity also he is not a working partner and will work silently thus we can say that he is a limited partner.