MANAGEMENT

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: -Key Takeaways. A general partnership is a business made up of two or more partners, each obligated for the business’s debts, liabilities, and assets. Partners assume unlimited liability, potentially subjecting their personal assets to seizure if the partnership becomes insolvent.

Detailed explanation-3: -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-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: -The primary difference between a general partner and a limited partner is their role in the company. General partners manage daily operations, while limited partners are silent investors. However, limited partners can make some decisions regarding the company’s financial performance to protect their investment.