MGTA01H3 Chapter Notes - Chapter 8: Limited Partnership, General Partnership, Privately Held Company
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MGTA01H3 Full Course Notes
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Document Summary
A form of partnership that allows for two classes of partner: general and limited. A general partner in a limited partnership is in the same legal posiion as in a general partnership: joint and several liability. The general partner paricipates in running the business on a day-today basis, directs the partnership"s employees and resources and make decisions on behalf of the business. 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 general partner is like a principal. An individual who puts capital into a business, and shares in the proit, but takes no role in management or decision-making. An individual"s responsibility or obligaions relaing to a business is limited to the amount of capital that they provided. If the business is sued, someone with limited liability can lose only the value of his or her capital.
