General partnership

Definition

A general partnership is a business arrangement where two or more individuals agree to share in all of the assets, profits, financial and legal liabilities of a venture. Unlike corporations, it does not offer its owners limited liability protection.

Related terms

Limited Liability:

A legal structure that protects business owners' personal assets from being used to satisfy business debts and liabilities.

Sole Proprietorship:

A form of business ownership where a single individual owns, manages, and assumes all risks for the business.

Corporation:

A legal entity that is separate from its owners, providing limited liability protection but subject to more regulations and taxation requirements than partnerships