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. Sole Proprietorship

    The sole proprietor is an unincorporated business with one owner ...
  4. Limited Risk

    The risk of an investment that has a predetermined maximum downside ...
  5. Limited Liability

    A type of liability that does not exceed the amount invested ...
  6. Corporation

    A legal entity that is separate and distinct from its owners. ...
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. Build A Wall Around Your Assets
    Retirement

    Build A Wall Around Your Assets

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center