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 proprietor.

Question

Quizplus · Accepted Answer

By becoming a limited partner, Mike's liability will be limited to the amount of his investment in the firm. This means that if the firm incurs any debt or lawsuits, Mike's personal assets (such as his recently inherited money) would not be at risk beyond his initial investment. This would provide Mike with peace of mind and protect his personal wealth.

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