General partners have unlimited liability. Limited partners are only on the hook for their investment in the business or the unpaid part of the investment.
limited partnership has two partners with different liability;general partners and limited partners.
A general partnership is one which partners share equally in both responsibility and liability. This is different from the limited liability partnership.
two classification of libilieties
two classification of libilieties
It extends to all general partners, but not to limited partners.
No, a limited partnership (LP) and a limited liability partnership (LLP) are not the same. In an LP, there are general partners who manage the business and have unlimited liability, while limited partners have limited liability but typically do not participate in management. In contrast, an LLP allows all partners to have limited liability, protecting them from personal liability for the partnership's debts and obligations, and typically all partners can participate in management. Thus, the key differences lie in liability and management roles.
A special form of partnership, called a Limited Liability Partnership, can be utilized. under this arrangement, one or more partners are designated general partners and have unlimited liability for the debts of the firm; other partners are designated limited partners and are liable only for their initial contribution.
liability
If the partnership is a general partnership, all partners assume unlimited liability. However, if the partnership is a limited partnership, one or more of the partners assumes unlimited liability
General partners
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non current liability