BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Every partner shares equally in both responsibility and liability
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The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership
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No partner is responsible for the debts of the partnership beyond his or her investment
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Only one partner is responsible for the debts of the partnership
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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. The specifics of profit sharing will almost certainly be laid out in writing in a partnership agreement.
Detailed explanation-2: -Answer and Explanation: A type of partnership in which all the partners share equally in both responsibility and liability is known as General Partnership.
Detailed explanation-3: -A general partnership is an unincorporated business with two or more owners who share business responsibilities. Each general partner has unlimited personal liability for the debts and obligations of the business. Each partner reports their share of business profits and losses on their personal tax return.
Detailed explanation-4: -In a general partnership, every partner has unlimited liability for the obligations of the business, including debts and taxes. This means if the partnership defaults on loan payments, then the personal assets of the general partners may be liquidated to repay the debt.
Detailed explanation-5: -In a partnership, each partner has a legal duty to act in the partnership’s best interests, as well as the best interest of the other partners. There’s also the legal duty of individual personal liability for partnership obligations. General partners are liable for all contracts entered into by other partners.