A Partner Owner)who Invests Money in a Business,does Not Take

question 319

Multiple Choice

A partner owner) who invests money in a business,does not take an active role in managing the operation,and is only subject to losing the funds he/she invested.

• A)Implied partner.
• B)Limited partner.
• C)Partial partner.
• D)Corporate partner.

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Definitions:

Fair Value

An estimated market value of an asset or liability based on current market prices or valuations.

Stock Investments

The purchase of shares in a company with the expectation of generating income or capital gains.

Insignificant Influence

Refers to a situation in which an investor does not have enough stake or power in an investee company to affect its decisions or policies.

Equity Method Investments

An accounting technique used to record investments in which the investor holds significant influence over the investee, usually recognized when owning 20-50% of the voting stock.