COMMERCE 1B03 Chapter Notes - Chapter 6: Limited Liability Partnership, Limited Partnership, General Partnership
14 Oct 2018
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Many people don"t have a desire, money, or time to run a business on their own. General partnership : is a partnership in which all owners share in operating the business and in assuming liability for the business"s debts. General partner is active in managing the firm. Limited partnership : a partnership with one or more general partners and one or more limited partners. Limited partner who invest money in the business but does not have any management responsibility or liability for the losses beyond the investment. Limited liability partnership : limits partners risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision. If you are a limited partner in an llp you can operate without fear tha tone of your partners might commit an act of malpractice resulting in your house, car to be taken away. This however is the case in a general partnership.
