Nadia invests $60,000, does not help run the firm, and can lose only that investment. Her co-owner manages and answers for all debts. What kind of partnership is this?

Two architects co-own a firm, both sign client contracts, and either owner's personal assets can be reached for unpaid business debts. What form is described?

A group of CPAs chooses a form where all partners work with clients, but one partner is not personally liable for another partner's malpractice. What form fits?

Marco contributes cash to a firm but stays out of management and cannot bind the business to contracts. His loss is capped at his contribution. What kind of partner is Marco?

In a catering firm, Asha signs contracts and creditors can pursue her personal savings if the firm cannot pay. Ben invested but does not manage. What role does Asha have?

A dental practice wants every owner to help manage, but it also wants protection from personal liability for another owner's professional mistake. What partnership form matches?

Two friends co-own a pet-sitting business but never put their terms in writing. Later they argue over profit splits and who may sign contracts. Which document should have settled both issues?

A partnership agreement says Aaron gets 60% of each year's earnings and Mei gets 40%, and any year's shortfall is split the same way. What issue did that clause settle?

Before opening, partners list who may borrow money or sign supplier contracts for the firm. That section of the agreement sets:

A partnership agreement explains how Jonah's share will be valued and bought if he retires. What does that clause plan for?

Mina puts in $25,000 cash and Luis puts in a delivery van worth $25,000, so each owns half. Which part of their partnership agreement records this?

In a general partnership, one partner orders $18,000 of inventory the firm cannot pay for. The supplier collects from a partner who never approved it. Why can that happen?

Priya orders flour in the ordinary course for a bakery partnership while her co-owner is on vacation. Why can the seller look to the partnership for payment?

In a limited partnership, the managing owner borrows for the firm. A silent investor who did not manage has already lost her $10,000 contribution. What further can the creditor usually take from her?

An accounting LLP partner commits malpractice on that partner's own client file. What does LLP protection usually NOT do?

After six years alone, Tasha brings in a co-owner who invests $50,000 and handles sales calls. What advantage of a partnership is shown?

Owen's repair shop becomes a partnership. He now must get his co-owner's approval before buying a second truck. What cost of adding a partner is shown?

A sole proprietor adds a partner who brings bookkeeping skill, but the owners must divide net income. What tradeoff does this show?

One of four partners withdraws. Their agreement never said the firm could continue, so the business legally ends and assets are settled. What is this ending called?

A two-owner partnership earns $80,000 in profit this year. How is that profit taxed?