Scott Thomas is a famous guitar player. A small business owner wants to market guitars using the Scott Thomas name as a brand. Scott wants to invest heavily in the business but not be involved in management and doesn't want to be liable for business debts above and beyond his investment Both want to keep things simple and private. What business should they consider under these circumstances? A. General partnership B. Sole proprietorship C. Cooperative D. Publicly held corporation E. Limited partnership

## Step 1<br />The problem presents a scenario where Scott Thomas, a famous guitar player, wants to invest in a small business owned by another person. Scott does not want to be involved in the management of the business and does not want to be held personally liable for business debts beyond his investment. The business owner also wants to keep things simple and private. We need to identify the most suitable business structure for these circumstances.<br /><br />## Step 2<br />Let's evaluate each option:<br /><br />### A. General partnership<br />In a general partnership, all partners share equal rights and responsibilities in managing the business. This includes shared liability for the business's debts and obligations. This does not meet Scott's requirement of not wanting to be involved in management or be liable for debts beyond his investment.<br /><br />### B. Sole proprietorship<br />A sole proprietorship is a business owned and run by one individual. There is no legal distinction between the owner and the business. This does not meet Scott's requirement of not wanting to be involved in management or be liable for debts beyond his investment.<br /><br />### C. Cooperative<br />A cooperative is a business owned and operated by a group of individuals for their mutual benefit. This does not meet Scott's requirement of not wanting to be involved in management or be liable for debts beyond his investment.<br /><br />### D. Publicly held corporation<br />A publicly held corporation is a company whose shares are owned by the general public. This does not meet Scott's requirement of not wanting to be involved in management or be liable for debts beyond his investment.<br /><br />### E. Limited partnership<br />A limited partnership is a business structure where at least one partner (the limited partner) has limited liability, meaning they are not personally liable for the business's debts beyond their investment. This meets Scott's requirement of not wanting to be involved in management or be liable for debts beyond his investment.