ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following are the correct features of a partnership?
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Arguments can occur with decision making
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Can sell shares privately to family and friends
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2-20 people, limited liability, owners can spread the risk
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2 or more people, unlimited liability, more capital available,
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Explanation:
Detailed explanation-1: -General partnership (GP) – is where all partners are equally responsible for the management of the business, and each has unlimited liability for the debts and obligations it may incur.
Detailed explanation-2: -A partnership is an arrangement between two or more people to oversee business operations and share its profits and liabilities. In a general partnership company, all members share both profits and liabilities. Professionals like doctors and lawyers often form a limited liability partnership.
Detailed explanation-3: -Some of the key features of LLPs are: They are a separate legal entity from their members. They have the benefit of limited liability for their members. They are taxed as a partnership.
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