ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a general partnership, all parties share legal and financial liability equally. The individuals are personally responsible for the debts the partnership takes on. Profits are also shared equally.

Detailed explanation-2: -Partners in a general partnership have shared liability for the debts and obligations of the business. Every partner agrees to unlimited personal liability for their actions, the actions of all other partners, and those of any and all employees.

Detailed explanation-3: -General Partnership General partnerships (GP) are the easiest and cheapest type of partnership to form. Two or more general partners own it, with joint and several legal liabilities for all debts and obligations. They jointly manage and control the business.

Detailed explanation-4: -A General Partnership (GP) is an agreement between partners to establish and run a business together. It is one of the most common legal entities to form a business. All partners in a general partnership are responsible for the business and are subject to unlimited liability for business debts.

Detailed explanation-5: -Typically, the terms general partner and limited partner in all types of partnerships will refer to liability, with general partners pledging their own personal assets while limited partners having limited liabilities.