An investor has $50,000 to invest as a limited partner in a partnership. The individual will be
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Question:
An investor has $50,000 to invest as a limited partner in a partnership. The individual will be one of several limited partners in the business. The business is not expected to make a profit for at least three years. Why has the investor most likely chosen to invest in this business?
Multiple Choice
The investor will be guaranteed to receive the $50,000 back if the venture fails.
The flow-through of losses is an important tax consideration for the investor.
The investor plans to use their management expertise in the business in order to generate profits.
The investor will be able to claim losses in excess of the $50,000 investment.
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