MGTA01H3 Chapter Notes - Chapter 8: General Partnership

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

People need the good and services of large and capital intensive businesses. Limited partnership: a form of partnership that allows for two classes of partners: general and limited. Must have at least 1 general partner have same legal position as one in general partnership participate in running business on a day-to-day basis. Cost of general partners have decision making authority is that they have joint and several liabilities for debts/obligations of the partnership (can be personally sued) In limited partnerships, a general partner is referred to as the principal: an individual who has authority to hire and instruct others to act on behalf of a business, and who bears the liability and responsibility. A limited partner: an individual who puts capital into a business, and shares in the profit, but takes no role in management or decision making. To create a limited partnership in canada, general partner(s) must comply w/ limited. Limited partnerships are often used when bus.