What is General partnership?
In short
A general partnership is an association of two or more people carrying on a business for profit as co-owners. It can be formed without any filing, and each partner has unlimited personal liability for its debts.
Key takeaways
- Each partner is an agent of the partnership for carrying on its business.
- Partners are jointly and severally liable for the partnership's obligations.
- Limited partnerships and limited liability partnerships limit some partners' liability.
Where it's tested
REG: Business Law: Agency & Business Structures — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In a general partnership, each partner's liability for partnership obligations is: