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Joyce Zacharia
Jan 27

Explain the type of partnership???

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Jan 27
A partnership is a type of business structure where two or more individuals or entities come together to carry out a business venture. There are several types of partnerships, including general partnerships, limited partnerships, and limited liability partnerships (LLPs).

1. General Partnership: In a general partnership, all partners have equal rights and responsibilities in managing the business. They share profits, losses, and liabilities equally. Each partner is personally liable for the partnership's debts and obligations.

2. Limited Partnership: A limited partnership consists of at least one general partner and one or more limited partners. The general partner(s) have unlimited liability and manage the business, while the limited partner(s) contribute capital but have limited liability and do not participate in the day-to-day operations.

3. Limited Liability Partnership (LLP): An LLP is a partnership where all partners have limited liability, protecting them from personal liability for the partnership's debts and obligations. Each partner is still involved in the management and decision-making of the business.

Partnerships are often chosen by professionals such as lawyers, accountants, or doctors who want to work together while sharing resources and risks. They offer flexibility, shared decision-making, and the ability to pool resources and expertise. However, it's important to note that partnerships require a formal partnership agreement to outline the rights, responsibilities, and profit-sharing arrangements among the partners.

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