Outline four types of partnerships
Types of partnershis
- General partnership; It is a partnership with only general partners. Each general partner takes part in the management of the business and also takes responsibility for the liabilities of the business. If one partner is sued, all partners are held liable.
- Limited partnership; It includes both general and limited partners. A limited partner does not participate in the day-to-day management of the partnership and his liability is limited.
- Limited liability partnership; It is different from a limited partnership or a general partnership but is closer to a limited liability company. In the limited liability partnership, all partners have limited liability. It combines characteristics of partnerships and corporations. As in a corporation, all partners in a limited liability partnership have limited liability from errors, omissions, negligence, incompetence or malpractice committed by other partners.