George and Margaret want to set up a business that makes and sells specialty ski boots.George will measure the customers and make the ski boots, and Margaret will be in charge of marketing and retail sales.Each of them is planning to invest $50,000 into the business.George wants to be able to write off his share of the business losses against his personal income tax, but he is not interested in participating in management - all he wants to do is make ski boots.They have decided that Margaret will take care of all the management of the business.

Based on this information, what type of business association should George and Margaret use to set up their business?What limitations and risks should George and Margaret be aware of when organizing their business using this model?