Company Research: Partnerships

There are three main types of Partnership companies
Nemesh, A. (2014). Partnerships. In Encyclopedia of Business and Finance (3rd ed., Vol. 2, pp. 591-593). Macmillan Reference USA.

• General partnership.
• Limited partnership.
• Limited liability partnership.

1. General Partnership: 

An association between two or more people who are seeking a profit. The partners share ownership, profits, losses, and liability. The partners decide who will manage the day-to-day affairs of the partnership. Each partner shares equally in the profits, losses, and liability for damages that may be incurred by employees or members of the partnership. Equal shares are assumed by the partners unless there is a written agreement that designates it differently.

2. Limited partnership: 

An association of one or more general partners and one or more limited partners with limited liability and with little or no managerial control. The limited partner is an investor only. The limited partners have limited liability as they are only liable to the extent of their investments. Limited partnerships must have at least one general partner who is responsible for all debts, liabilities, and any other obligations of the partnership.

3. Limited Liability partnership: 

A form of business organization combining elements of partnerships and corporations. Each individual state has its own laws governing the formation of LLPs. LLPs are available only in some states and only to professionals such as engineers, physicians, architects, lawyers, and accountants.