Question

Six investors purchase a shopping center. One of them manages the tenants and another manages the marketing and leasing. Two other investors manage accounting and finance, and the remaining two run the management office. The six investors spend equal time at their management responsibilities for the shopping center. This example best matches:______.
a. a general partnership.
b. a limited partnership.
c. a real estate investment trust.
d. an investment conduit.

Answer 1

Answer:

a. a general partnership

Explanation:

Based on the scenario being described within the question it can be said that this example best matches a general partnership. This term refers to a business arrangement in which two or more individuals all agree to join forces and unify all assets, profits, losses, and liabilities. Which is what the six investors are doing by purchasing and equally owning a shopping center together.

Answer 2

Answer:

A. General partnership.

Explanation:

A general partnership is defined as a business arrangement between two or more individuals who agree to share all assets, profits, and financial and legal liabilities of a jointly-owned business.

An investment conduit is defined as an entity that holds a fixed pool of mortgages and issues multiple classes of interests in itself to investors under U.S. Federal income tax law and is "treated like a partnership for Federal income tax purposes with its income passed through to its interest holders"

A limited type of partnership is ome in which some of the partners contribute only financially and are liable only to the extent of the amount of money that they have invested