Mike Nettles approached Nathan Lang about becoming a partner in a firm that destroys environmental waste.While Mike would like to become a partner in the firm, he is concerned about his liability because he has recently inherited a lot of money.In this situation, Mike should become a
A) general partner with a majority ownership interest in the business.
B) general partner with a minority ownership interest in the business.
C) limited partner.
D) joint venturist.
E) sole trader.

Question

Quizplus · Accepted Answer

By becoming a limited partner, Mike would limit his liability to the extent of his investment in the firm. This means that if the firm were to face any legal claims or debts, Mike's personal assets and inheritance would not be at risk. This option allows Mike to become a partner in the firm while protecting his personal financial interests.

Mike Nettles Approached Nathan Lang About Becoming a Partner in a Firm