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Two of Diana's friends have approached her about starting a new business. Diana is willing to invest money in the business and share in its profits, but she has no desire to be involved in the day-to-day
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Two of Diana's friends have approached her about starting a new business. Diana is willing to invest money in the business and share in its profits, but she has no desire to be involved in the day-to-day management of the company, nor is she willing to risk any amount beyond her initial investment. Diana's preferences suggest that she prefers a general partnership form of business ownership.a. Trueb. False

User Keammoort
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2 Answers

6 votes

Answer:

A.true is the answer

Step-by-step explanation:

I think so.

User Methodofaction
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3.4k points
3 votes

Answer:

The correct answer is letter "B": False.

Step-by-step explanation:

General Partnerships are businesses where the partners share complete liability. It means that in front of debt of the company, the personal assets of the partners are considered for repayment. Besides, partners share the decision-making and management of the organization. Profits are distributed according to the contribution of each partner to the business.

Therefore, as Diana does not want to be involved in the management of a business and does not want to risk more than her original investment, a general partnership is not suitable for her and her friends. They should form a Limited Partnership.

User Hvwaldow
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3.3k points
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