QUESTION IMAGE
Question
why might an entrepreneur choose a limited partnership for a business that includes investors who are not involved in daily operations? (1 point)
to allow the business to operate with an unlimited lifespan
to make it easier for the business to issue shares of stock
to give every partner an equal say in all business decisions
to offer investors protection from personal liability for business debts
In a limited partnership, limited partners (investors not involved in daily operations) have limited liability. Their personal assets are protected from business debts. A business with an unlimited lifespan is more characteristic of a corporation. Issuing shares of stock is typical for corporations. In a limited partnership, general partners (involved in operations) have more say than limited partners. So, the key reason for choosing a limited partnership in this context is to protect investors (limited partners) from personal liability for business debts.
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To offer investors protection from personal liability for business debts