Question

1. In the business a general partnership or limited partnership?

2. Do the partners have a written partnership agreement? What type of the agreement commonly used?

Answer 1

Answer :-

1)

i) The terms general partner and limited partner in all types of partnerships will refer to liability.

ii) with general partners pledging their own personal assets while limited partners having limited liabilities.

iii) A limited partnership is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners, a limited partnership must have at least one General partnership and at least one limited partner.

iv) A limited partnership is a relationship where one or more partners are not involved in the day-to-day management of the business.

v) A general partner may invest money into the company. However, a general partner may also be personally liable for the debts of the company, while the limited partner is not.

2)

i) Partnerships are unique business relationships that don't require a written agreement. However, it's always a good idea to have such a document.

ii) The most common manner of partnerships agreement and profit-sharing is to divide the profits in the ratio of capital injection by each partner.

Thank you.