Beau Has Agreed to Invest $19,000 in a Partnership with His

question 36

Multiple Choice

Beau has agreed to invest $19,000 in a partnership with his brother and sister-in-law. Not being in the same line of work as them, Beau does not intend to actively work in the partnership. He also does not want to risk any of his own assets other than the $19,000 investment. The partnership has agreed to permit him to share in the profits. As an expert on forms of business ownership, you know that Beau is a ________ in this partnership.

• A) general partner
• B) preferred stockholder
• C) secondary partner
• D) limited partner

---

Definitions:

Annexation

The act of incorporating a land area into another political entity, such as a country or state, often implying a forceful or unilateral acquisition.

Statehood

The status attained by a region or territory when it becomes a recognized state within a federal system or an independent nation, often involving a legal and constitutional process.

Presidential Election

The process by which the president of a country is elected, often involving a national vote.

Mexican War

Also known as the Mexican-American War, a conflict between the United States and Mexico from 1846 to 1848, leading to the U.S. acquisition of territories that comprise present-day California, Arizona, New Mexico, and parts of other states.