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Absent an express agreement otherwise, the general default rule is that all of the partners share the profits and losses of the partnership equally. In other words, all of the partners are responsible for the debt, unless there is some other specific arrangement.
Wiki User
∙ 14y ago
Wiki User
∙ 6y agoThat depends on the laws of the country in which the business is set up and if the company is private or limited liability.
If private then the answer is likely to be yes because the partners will be jointly and severally liable for the debts, the creditors will come after all partners but will seek to recover their money from whichever partner they can.
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If a general partnership fail who is responsible for the debts?
All of the partners are responsible for the debts.
What is one way a general partnership differs from a limited partnership?
Each partner in a general partnership is fully responsible for all of the business's debts
What is one way that a general partnership differs from a limited partnership?
A general partnership would not be as close knit as the limited partnership. There also would not be as many legal proceedings to go with it.
General Partnership - Abbreviation?
A general partnership is a business design in which each partner of the business is responsible for the companyâ??s debts. The actions of one partner are binding for each partner within this relationship. The abbreviation for a general partnership is GP.
Who is responsible for a loan if both the borrower and guarantor have died?
The estates are responsible for the debts of the decedents.The estates are responsible for the debts of the decedents.The estates are responsible for the debts of the decedents.The estates are responsible for the debts of the decedents.
What statement about corporations is not true?
their shareholders are responsible for the corporation's actions and debts Their shareholders are responsible for the corporation's actions and debts Their shareholders are responsible for the corporation's actions and debts kking kkilla Their shareholders are responsible for the corporation's actions and debts Their shareholders are responsible for the corporation's actions and debts Their shareholders are responsible for the corporation's actions and debts
Who is responsible for expenses while a home is in probate?
The estate is responsible for paying the debts and the estate representative, appointed by the probate court, is responsible for paying the debts from the estate.The estate is responsible for paying the debts and the estate representative, appointed by the probate court, is responsible for paying the debts from the estate.The estate is responsible for paying the debts and the estate representative, appointed by the probate court, is responsible for paying the debts from the estate.The estate is responsible for paying the debts and the estate representative, appointed by the probate court, is responsible for paying the debts from the estate.
Which legal forms of business have unlimited liability?
Sole proprietorships and general partnerships have unlimited liability. In a sole proprietorship, the owner is personally responsible for all debts, liabilities, and legal obligations of the business. Similarly, in a general partnership, each partner is personally liable for the partnership's debts and obligations.
Your sister committed suicide and made you executor she has debts are you responsible?
No. You are not personally responsible for your sister's debts. The estate is responsible for the debts of the decedent.
What is the difference between registered company and partnership?
Unlike the shareholders in a limited company, the members of a general partnership have no financial protection if the business runs into trouble - each partner is responsible for the debts of the partnership as a whole. This means that each partner's personal assets may be at risk if the business fails
Differences between sole trader and partnership?
A sole trader is an individual who owns a business entirely where as, a partnership is a busines entity comprised of two or more individuals. A sole trader would become personally liable for paying the debts where as in partnership, personal liability is shared, meaning that all partners will be liable to cover the compay's debts. A sole trader is solely responsible for the financial dealings where as in partnership, all partners contribute towards capital in the firm.
Which is an advantage of a limited partnership?
Liability Protection:In general partnerships, each participant is personally responsible for the actions of the company. This includes debts, liabilities and the wrongful acts of other partners. One advantage of a limited liability partnership is the liability protection it affords.Flexibility:Liability partnerships offer participants flexibility in business ownership.
