An individual who invests in a partnership but is not involved in the day-to-day management of the partnership is referred to as an):
A)general partner.
B)limited partner.
C)capital partner.
D)investor.

Question

Quizplus · Accepted Answer

A limited partner is an individual who invests in a partnership but is not involved in the day-to-day management of the partnership. They also have limited liability for the partnership's debts and obligations. The other choices are not specific to this type of partner. A general partner is actively involved in managing the partnership and has unlimited liability for its debts and obligations. A capital partner can refer to any partner who contributes capital to the partnership, and an investor is a broad term that can refer to anyone who invests in any type of financial asset.

An Individual Who Invests in a Partnership but Is Not