Question

Jenna approached Al Ternator about joining the business as an owner. She proposed that she continue to provide the technical expertise and deal directly with customers, while Al, who has a college degree in finance, handles many of the financial aspects of running AutoMotion. In addition, Jenna wants Al to contribute some much-needed money for expansion. Under Jenna's proposal, she and Al would operate the business together as:A. limited partners.

B. general partners.
C. majority shareholders.
D. business consultants.

Answer 1

Answer: General partners

Explanation:

General partners refers to the group of two persons operating a business. These partners have the decision making authority in the business and are personally liable for any debt and liabilities of the business.

In the given case, Jenna and Al both are willing to operate a business together. There is nothing mentioned about the limited liability and also the structure is not company so they could not be majority shareholders.

They are working for themselves and not for others so they are not consultants either.

Hence the correct option is B.