Agreement Between Two Business Partners
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Some of you studying this may have noticed that in the example over, John didn't invest a penny. He used his time and expertise rather, and produced the same $24,571 revenue as the relaxation. You can see that if you consider John's role that this is a way to make investments with no money. Of course, as the general partner, if the partnership is sued, he could lose his house and other assets, whilst limited companions could lose only the $10,000 they invested. This is 1 of the big advantages of a limited partnership.
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