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Maanka Addow
March 14, 2023 | 7:34 am |1 Answers

what is partnership

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caawiyepanel
March 14, 2023, 8:01 am
Partnership is a business model in which two or more individuals or entities collaborate and agree to share the profits and losses of a business venture. Partnerships can take many forms, including general partnerships, limited partnerships, and limited liability partnerships. In a general partnership, all partners have unlimited liability for the business's debts and obligations. This means that each partner is personally responsible for the partnership's debts and obligations, and their personal assets can be used to pay off any outstanding debts. In a limited partnership, there are one or more general partners who have unlimited liability, and one or more limited partners who have limited liability. Limited partners typically have less control over the business's operations but are not personally liable for the partnership's debts beyond the amount of their investment. In a limited liability partnership, all partners have limited liability, meaning they are not personally responsible for the partnership's debts and obligations beyond the amount of their investment. However, partners in a limited liability partnership still have management responsibilities and may be held liable for their own actions or misconduct. Partnerships can be a flexible and effective way to start and run a business, as they allow partners to combine their skills, resources, and expertise to achieve common goals. However, it is important for partners to establish clear roles, responsibilities, and expectations upfront and to have a well-defined partnership agreement to minimize conflicts and misunderstandings down the line.
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