Anand Has Been Asked to Join a New Partnership That

question 54

Multiple Choice

Anand has been asked to join a new partnership that is developing wind energy technologies.Because the business is high risk,he does not want to be liable for the firm's debts if the project should fail.He could still participate as a

• A) general partner.
• B) limited partner.
• C) silent partner.
• D) working partner.
• E) contributor.

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Definitions:

Net Investment

The total a company invests in new capital assets, minus the cost of depreciation.

Bondholders

Individuals or institutions that hold the debt securities issued by governments or corporations, entitled to receive interest payments and the principal on maturity.

Common Stockholders

Individuals or entities that own shares of common stock in a company, granting them certain rights like voting on corporate matters.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities, capable of conducting business, owning assets, and being taxed.