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Which of the following entity owners cannot participate in management of the entity?

1) A member of a limited liability company.
2) A general partner in a general partnership.
3) A partner in a limited liability partnership.
4) A limited partner in a limited partnership.
5) None of these choices are correct.

User Krasnaya
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1 Answer

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Final answer:

A limited partner in a limited partnership cannot participate in the management of the entity, as they are passive investors with limited personal liability.

Step-by-step explanation:

The entity owner who cannot participate in the management of the entity is a limited partner in a limited partnership. In a limited partnership, there are two types of partners: general partners and limited partners. While general partners have the authority to actively manage the company on a day-to-day basis, limited partners are typically passive investors who are not involved in the daily operations of the business. They invest capital into the business and share in the profits but are not allowed to make managerial decisions. This structure allows limited partners to benefit from profits while limiting their personal liability and exposure to the company's debts.

User Divina
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