Shawn and Jasmine Want to Start a Partnership to Sell

question 1

Essay

Shawn and Jasmine want to start a partnership to sell hand woven sweaters. Jasmine's parents would like to invest, but they do not wish to be subject to liability for losses in excess of their capital contribution. Jasmine's mother tells Shawn and Jasmine that if she invests, she expects to have a significant say in the management of the business. Should Shawn, Jasmine, and Jasmine's parents enter into a limited partnership with the parents being limited partners, and why or why not? Would a limited liability company be a good option, and why or why not?

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Definitions:

Aggressive Behavior

Actions that are intended to cause harm or pain to another person, or to destroy property.

Teenagers

Individuals typically between the ages of 13 and 19, characterized by rapid physical, emotional, and social development during the transition from childhood to adulthood.

High School

An educational institution that typically includes grades 9 through 12, focused on preparing teenagers for college, vocational training, or the workforce.

Shared Interests

Common activities, goals, or passions that create a bond between individuals or groups.