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| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1718 |
Essay's paper body
In terms of asset protection, general partnerships can be even worse than sole proprietorships. Anything that one partner does affect all the partners, because each partner of the general partnership is personally responsible for all obligations of the partnership. Thus each general partner's exposure to risk is increased by a factor equal to the number of general partners in the business...
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(General Partnership, 2004)
Formal terms of the partnership are usually contained in a written partnership agreement. The benefits of this type of entity are that it is only slightly more complicated to set up than a sole proprietorship. In addition, business income and tax liability passes through to each partner so no separate tax filings are necessary for the entity...
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General points of the essay
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