Question

Which type of partnership is allowed to raise capital by selling units of​ ownership, much like a corporation sells shares of stock to the​ public?

Answer 1

It is limited partnership

Step-by-step explanation:

Under a limited partnership structure, we have general partners who have unlimited liability — and one or more limited partners who have limited liability.

Since the general partner has unlimited liability, they are personally liable for all the partnership’s business debts. Conversely, limited partners aren’t personally liable for company debts in this ownership structure.

One of the major advantages of limited partnerships is that you can raise money from a relatively small number of investors who may not be directly involved in the day to day running of the business and as well have limited liability.