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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.

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13y ago

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Features of limited partnership?

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What is a partnership in which partner share equally in both responsibility and liability?

A general partnership is one which partners share equally in both responsibility and liability. This is different from the limited liability partnership.


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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.


What form of partnership allows some of the investors to limit their liability?

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