Leo has operated a business for many years. The business is very successful and there is an opportunity to expand. In order to raise the required capital, Leo is thinking of asking some friends to contribute capital as partners in the business. When he asks you whether the rights and protections for partners in a partnership are the same as for shareholders, which of the following would be the CORRECT response?
1) Yes, the rights and protections for partners in a partnership are the same as for shareholders.
2) No, the rights and protections for partners in a partnership are different from those for shareholders.
3) The rights and protections for partners in a partnership depend on the specific partnership agreement.
4) The rights and protections for partners in a partnership depend on the number of partners in the business.