Sue Has a Great Idea for a Business but Has

Multiple Choice

Sue has a great idea for a business but has limited financial assets. She wants to retain control over the management of the company, but she needs someone to provide additional financing. Her friend Tom has some money to invest and likes Sue's idea. He would like to share in any profits, but he doesn't have the time for or interest in managing the company and is nervous about the liability involved in running a business. What type of ownership structure would best suit both Sue and Tom?

A) foreign corporation
B) general partnership
C) sole proprietorship
D) limited partnership