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Question
Arthur and Alan decide to open a retail store and operate the business as a partnership. As they require some additional funds to get the business in operation, they ask Jayne whether she would like to invest some funds in the business and become a limited partner. Assuming that Jayne becomes and remains a limited partner, which of the following statements concerning her status is correct?
A. She may be involved in management of the business, but to a rather limited degree.
B. She will not be entitled to any share in the profits of the business.
C. She will have no personal liability for partnership debts, although she may lose the amount she invested in the business.
D. She may be considered an employee and therefore will be entitled to wages for the services she rendered to the partnership.
Answer
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