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Saudi electronic university
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Running head: CASE STUDY 1
Case Study
Student Name
Tutor Name
Institutional Affiliation
Course
Date

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CASE STUDY 2
A limited partnership will be a more suitable choice in the case of Deidre, as this type of
business incorporates both general and limited partners. A limited partnership starts when one
general partner is available and another limited partner. A limited partner only offers capital or
investment to the business. Even though they contribute to the business capital-wise, these
individuals do not have decision-making rights. In the case of Deidre, she does not desire the
involvement of her aunt in the business. Hence, her aunt will only have ownership rights under
this entity but is free from risks and duties like the ones of the general partner.
On the other hand, Limited partners can get deprived of their status if they become too
engaged in the management of the business, for instance, through the signing of legal documents.
Hence, it calls for the limited partner to be vigilant in whatever decision they make in the
partnership. A limited partnership has significant advantages over corporations, which also allows
unlimited partners (Nicholas, 2019). The business also gets to enjoy particular tax advantages.
Capital contribution in this type of business is enormous as it involves more than one partner.
Hence, this would increase the business scope as the grant will affect Deidre's aunt and herself.
The outcome is significant flexibility and an increase in profits. Large capital fosters a strong pillar
for businesses to create a platform to facilitate their operations. There are also limited liabilities
regarding losses (Nicholas, 2019). This type of business eliminates liability from partners for the
debts incurred by the company. Partners cannot be held responsible for exceeding the amount they
contributed. The aspect diminishes the threats of injecting personal assets into debt repayment and
responsibilities.

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Running head: CASE STUDY 1 Case Study Student Name Tutor Name Institutional Affiliation Course Date CASE STUDY 2 A limited partnership will be a more suitable choice in the case of Deidre, as this type of business incorporates both general and limited partners. A limited partnership starts when one general partner is available and another limited partner. A limited partner only offers capital or investment to the business. Even though they contribute to the business capital-wise, these individuals do not have decision-making rights. In the case of Deidre, she does not desire the involvement of her aunt in the business. Hence, her aunt will only have ownership rights under this entity but is free from risks and duties like the ones of the general partner. On the other hand, Limited partners can get deprived of their status if they become too engaged in the management of the busines ...
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