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The partner with unlimited liability is generally the initial person who started the partnership and owns the majority of the company.

Unlimited liability means if the company fails, files for bankruptcy and you owe debts; then your personal assets can be seized such as your home, car, contents of your bank accounts to pay off the debts.

The other partner(s) are only liable for their investment in the company.

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16y ago

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Is this true or false The 3 types of partnerships are general partnership unlimited partnership and unlimited liability partnership?

The ones I'm aware of (In the US) are General Partnership, Limited Partnership (LP), Limited Liability Partnership (LLP), and Limited Liability Limited Partnership (LLLP)


Is limited partnership and limited liability partnership the same thing?

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 does LLP after a company name stand for?

Limited Liability Partnership


How many limited liability partnerships compare with general partnerships?

The main difference between limited liability partnership and general partnerships is limited liability. Partners of an general partnerships are liable for all debts accumulated. Partners of an limited liability partnership are enjoying limited personal liability protection. However many people may prefer to incorporate Limited Liability Company instead of an limited liability partnership.


How many types of partnership possible?

4 types -general partnership -limited partnership -master limited partnership -limited liability partnership


Features of limited partnership?

limited partnership has two partners with different liability;general partners and limited partners.


What type of business has the most liability partnership sole proprietorship corporation or limited liability partnership?

The liability of various forms of business are as follows: Partnership: The liability of the partners is joint, several and unlimited. Sole proprietorship: The liability is of the proprietor is unlimited. LLP: The liability is limited by MOA and AOA.


What is a “Limited Liability Partnership” or “LLP”?

LLP or Limited Liability Partnership has become a popular form of organization among entrepreneurs in India. A Limited Liability Partnership gives the benefits of a Company & a Partnership Firm. An LLP in India is a Partnership Firm established by at least 2 Partners who enter into an LLP Agreement. However, the LLP Partner have limited liability and the LLP has perpetual succession just like a Company.


What is LLP stand for?

Limited Liability Partnership


What suitable designation can be used by partner according to the partnership act 1932?

The Partnership Act of 1932 allows for a Limited Liability Partnership. In a Limited Liability Partnership, one partner is not responsible for another partner's negligence and misconduct. Depending on the state, and the partnership, there are varying degrees of limited partnership.


What is limited Liability insurance?

Limited liability is a concept whereby a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. A shareholder in a limited liability company is not personally liable for any of the debts of the company, other than for the value of his investment in that company. The same is true for the members of a limited liability partnership and the limited partners in a limited partnership. By contrast, sole proprietors and partners in general partnerships are each liable for all the debts of the business (unlimited liability).


What are the characteristics of a partnership?

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