Question
Two individuals are planning to invest in the purchase and operation of a 6-unit rental apartment building in the Chicago suburbs. The total cost will
Two individuals are planning to invest in the purchase and operation of a 6-unit rental apartment building in the Chicago suburbs. The total cost will be $750,000. They will purchase the building by making a downpayment of $150,000 and will borrow the remaining money with a mortgage. PArtner A will contribute 75% of the financial capital for the downpayment, but will not be involved the day to day operations. Partner B will be "guaranteed" a salary of $3,000 per month. Operating income will be split in proportion to the initial investment in the partnership. For this part indicate which of the three types of partnerships would be the best form for this project.Support your answer using the characteristics of partnerships and the risks that the entity and the partners facae
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