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Business Studies

Types of Partners , Partnership and Companies

Abid and Rash...

Question

Abid and Rashid come together to form a partnership, pool in resources, and decide to share the profit and losses. Their liability is unlimited and joint. Their personal resources may be called to pay the debts of the business. What type of partnership do they share?

A

General Partnership

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B

Limited Partnership

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C

Partnership at will

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D

Particular partnership

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Solution

The correct option is A
General Partnership

They share a general partnership where both pool in resources, decide to share the profit and losses and also their liability is unlimited.

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