General Partnership

AAA

DEFINITION of 'General Partnership'

A arrangement by which partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership's obligations.

INVESTOPEDIA EXPLAINS 'General Partnership'

Since all partners have unlimited liability, even innocent partners can be held responsible when another partner commits inappropriate or illegal actions. This fact alone demonstrates how an investor should heed caution when deciding on whether to become a general partner.

RELATED TERMS
  1. Silent Partner

    An individual whose involvement in a partnership is limited to ...
  2. Internal Claim

    A claim by a creditor that is restricted to the business's assets ...
  3. Corporation

    A legal entity that is separate and distinct from its owners. ...
  4. Joint Venture - JV

    A business arrangement in which two or more parties agree to ...
  5. Limited Liability Company - LLC

    A corporate structure whereby the members of the company cannot ...
  6. Master Limited Partnership - MLP

    A type of limited partnership that is publicly traded. There ...
Related Articles
  1. What's the difference between limited ...
    Entrepreneurship

    What's the difference between limited ...

  2. The Basics Of Corporate Structure
    Investing Basics

    The Basics Of Corporate Structure

  3. Basic Investment Objectives
    Options & Futures

    Basic Investment Objectives

  4. Can I invest my IRA in an entity, business ...
    Bonds & Fixed Income

    Can I invest my IRA in an entity, business ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center