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The key difference between general partnerships and limited partnerships lies in the liability and management structure. In a general partnership, all partners share equal responsibility for managing the business and are personally liable for its debts. In contrast, a limited partnership includes both general partners, who manage the business and have full liability, and limited partners, who contribute capital but have limited liability and typically do not participate in day-to-day management. This structure allows limited partners to invest without risking their personal assets beyond their investment in the partnership.

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1mo ago

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