Question

Maria wants to start a new business in collaboration with her husband and brother-in-law. The features she is looking for in the business are as follows: least possible regulatory controls, faster decision making, and ease of organization. She also wants a business in which she will not be forced to pay off any business debts from her personal assets. Which type of business ownership will be best suited to her needs? Question 1 options: A) C corporation B) Limited partnership C) S corporation D) General partnership E) Sole proprietorship pdf

Answer 1

Answer:

B) Limited partnership

Explanation:

Limited partnership is one where the partners involved are liable only to the extent to which they contributed to the partnership.

Also some partners only contribute financially. That means they shielded to the extent of their contribution.

In this type of partnership there is least possible regulatory controls, faster decision making, and ease of organisation because partners actually involved in running the business are few or only one person.

It also has the advantage of being a business in which the active partner will not be forced to pay off any business debts from their personal assets.