Question

Maria and Sylvia have always wanted to start their own restaurant business and be an entrepreneurs. As entrepreneurs, they must decide whether the business should operate as a general partnership or as a limited partnership. Which is the better choice?

Answer 1

Answer: A general partnership would probably be the best option.

Explanation: If Maria and Sylvia enter a general partnership, they will be equally liable for debts and responsibilities. They will be able to manage the business. However, in a limited partnership, they would be unable to be part of the management process and would only be liable for the amount they each invested.