Question

Which of the following roles best fits the situation?

Kevin wants to create a business but is not sure what role is best for him. He has capital to invest. He has several partners with which he can begin a business. He has the most management experience of all his potential partners.

A. Limited partner in a limited partnership.
B. Neither a limited or general partner would be a good choice.
C. General partner in a limited partnership.

Answer 1

The correct answer to the following question will be Option C.

Step-by-step explanation:

Limited Partnership seems to be a form of cooperation where partner responsibility becomes restricted to the degree to which they should have invested their money. It is a companion contributing even just a capital, i.e. only financial stake.

• General Partner seems to be the associate who continues to operate the alliance company and seems to be responsible for the company's activities.
• According to the above scenario, Kelvin has an investment to open a company as well as a few partner organizations to do so. As some other collaborators have the financial commitment, a public benefit relationship should be established. He seems to have professional experience, though in this configuration he should choose to become a limited partner or shareholder.

So that the above is the right answer.