Question
Review the following scenarios, then choose the response that describes taxpayers who are involved in a limited partnership. Jordan operates a computer repair shop and
Review the following scenarios, then choose the response that describes taxpayers who are involved in a limited partnership.
Jordan operates a computer repair shop and is personally liable for the debts of the business. Jordan accepted $50,000 from Marc to help open the business and now Marc shares in the profits with Jordan. If the business fails, Marc will only be liable for up to $50,000.
Mervin owns a pet store and is personally liable for the debts of the business. Olivia works in the store as a salesperson, is paid $35,000 per year and does not share in any profits, nor is she personally liable for any debts of the business.
David and Lisa own and operate a year-round fruit and vegetable stand. They are both personally liable for the debts of the business. Darian works for David and Lisa as an employee at the stand and made $25,000 for the year. She does not share in any profits, nor is she personally liable for any debts of the business.
Mica and Sven operate a small independent book publishing plant. They both share equally in the profits, and they are both personally liable for the debts of the business. Sven's brother works at the plant as the pressman and makes $50,000 per year.
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