The Book Nook Analysis

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Recommended: Advantages of limited partnership

Limited partnerships, like The Book Nook, hold several advantages, especially for limited partners, like Ben and Bob. The main advantage for limited partners is that their personal liability for business debts is limited. A limited partner can only be held personally responsible up to the amount he or she invested. Limited partners enjoy a protected investment, knowing they cannot lose more money than they've contributed. For example, let's say a book superstore opens right next door to The Book Nook. As a result, The Book Nook loses customers to the new store. Brandi is several months behind in paying the store's rent and hasn't paid the bills for the last two shipments of books. In total, The Book Nook owes its creditors $200,000, and the

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