ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -All partners can participate in management activities, decision making, and have the right to control the business. Similarly, profits, debts, and liabilities are equally shared and divided equally.

Detailed explanation-2: -Usually equal: Partners in a general partnership take on equal personal responsibility for the business. That means equal shares of profits and equal liability for debts or legal action.

Detailed explanation-3: -In a general partnership, the partners divide responsibility for management, liability and their share of the business’ profits or losses. Shares are assumed to be equal unless a written agreement states differently.

Detailed explanation-4: -General partners are two or more persons engaged in a business for the purpose of joint profit, thereby creating a general partnership. General partners assume unlimited joint and several personal liability; as such, a general partner may be personally liable for the actions of other general partners.

Detailed explanation-5: -A general partnership is a business entity in which two or more partners agree to share in a company’s profits, losses, and assets. By default, partners share these things equally-unless their partnership agreement stipulates otherwise.