Two of Diana's friends have approached her about starting a new business. Diana is willing to invest money in the business and share in its profits, but she has no desire to be involved in the day-to-day management of the company, nor is she willing to risk any amount beyond her initial investment. Diana's preferences suggest that she prefers a general partnership form of business ownership. a. Trueb. False

Question

Business

Browning

8 July, 14:19

Two of Diana's friends have approached her about starting a new business. Diana is willing to invest money in the business and share in its profits, but she has no desire to be involved in the day-to-day management of the company, nor is she willing to risk any amount beyond her initial investment. Diana's preferences suggest that she prefers a general partnership form of business ownership. a. Trueb. False

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Answers (2)

Know the Answer?

Julian Gardner · Answer 1

A. true is the answer

Explanation:

I think so.

Jair Hudson · Answer 2

The correct answer is letter "B": False.

Explanation:

General Partnerships are businesses where the partners share complete liability. It means that in front of debt of the company, the personal assets of the partners are considered for repayment. Besides, partners share the decision-making and management of the organization. Profits are distributed according to the contribution of each partner to the business.

Therefore, as Diana does not want to be involved in the management of a business and does not want to risk more than her original investment, a general partnership is not suitable for her and her friends. They should form a Limited Partnership.