BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Limited partnerships will have at least one general partner to man the day-to-day operations of the business. A general partner may invest money into the company. However, a general partner may also be personally liable for the debts of the company, while the limited partner is not.

Detailed explanation-2: -In every partnership, at least one partner must be a general partner who will manage the business and have unlimited liability. In other words, the liability of the general partner is not limited to the contributions and the third party can sue the general partner for the claims.

Detailed explanation-3: -How they’re different: All partners are general partners in a general partnership, and ownership responsibilities are spread equally among them. In a limited partnership, operations are handled by general partners, whereas limited partners do not take part in the day-to-day running of the business.

Detailed explanation-4: -The most common type of partnership, a general partnership is arranged by two partners who will have unlimited liability, which means that their personal assets are liable to the partnership’s obligations and debts.

Detailed explanation-5: -A limited partnership is required to have both general partners and limited partners. General partners have unlimited liability and have full management control of the business. Limited partners have little to no involvement in management, but also have liability that’s limited to their investment amount in the LP.