Question

At Sound Off!, a store that buys and sells used CDs, there is only one general partner, Sonia. She spends all her time running the business, and makes all the decisions. Sonia's mother and brother put up money for her to buy the store, but they work full time at other jobs and have no management say in the running of Sound Off!, but share in some of the profits. This is an example of a___________.

Answer 1

Answer:A Limited Partnership

Explanation:A Limited Partnership is a partnership in which there is a general partner who is in charge of managing the business and who is liable for all obligations in this partnership. There is also a limited partner who is not fully liable and doesn't take part in managing the business

"Soni spends all her time running the business, and makes all the decisions."

Sonia is obviously a general partner, because of all these duties; she runs the business and makes the decisions.

"Sonia's mother and brother put up money for her to buy the store, but they work full time at other jobs and have no management ". Her mother and brother are limited partners since they only out money but are not managing the business.