Alice, Betty, and Cathy are interested in forming a business venture. Alice is quite wealthy and is ...

The general partnership form is not appropriate because each owner would be liable for all debts of the organization. In light of her wealth, Alice might be particularly troubled with the liability exposure of a general partnership.
The limited partnership form is arguably a preferable choice in this situation. Should the parties choose a limited partnership, Betty (with her business acumen) might be best positioned to serve as the general partner, and Alice and Cathy could be limited partners. Under the Revised Uniform Limited Partnership Act, it is possible that both Alice and Cathy could contribute to the effective management of the firm (by consulting with and advising Betty, the general partner, regarding the partnership business) without losing their limited liability status.