Question

What Are Three Different Kinds of Partnerships and How Do They Differ?

Answer 1

The three kinds of partnerships are general partnership, limited partnership and limited liability partnership.

These three differ from each other as follows:

In a general partnership, all the share duties and all are liable for the business debts. Whereas, in a limited partnership, at least one partner is found to be not involved in any business decisions regarding the day to day operations.

The role of that partner is to provide a part of capital to the business. In a limited liability partnership, the partners are having limited liability to the extent of their contribution in the business and are not responsible for other partners’ debts.

Also read:

• Dissolution of Partnership Firm
• Reconstitution of a Partnership Firm Retirement Death of a Partner
• MCQs on Partnership
• Partnership Deed
• Modes of Reconstitution of a Partnership Firm

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