Read pages 310-326 of Legal Environment of Business.

Good evening Class,

A general partnership is”an association of two or more persons to carry on as co-owners of a business for profit”(Cheeseman, 2016). Forming a general partnership requires two or more people to invest in a business and a third party is involved with debts and liabilities owed by the partners within the general partnership. There are four steps that a general partnership must meet to be formed. “It must be (1) an association of two or more persons (2) carrying on a business (3) as co-owners (4) for profit”(Cheeseman, 2016).  The general partnership does not have to be formal to meet with each other. A limited partnership is “a type of partnership that has two types of partners: (1) general partners and (2) limited partners”(Cheeseman, 2016). A limited partnership must be formed with a general partner. A certificate of limited partnership must be created to solidify the limited partnership. “The entity must comply with the statutory requirements of the RULPA or other state statutes”(Cheeseman, 2016). The liabilities that general partnerships are subject to are: unlimited personal liability, joint and several liability and the liability of incoming partners. Limited partnerships “have limited liability for the debts and obligations of the limited partnership”(Cheeseman, 2016).

Reference: Cheeseman, Henry (2016). Legal Environment of Business: Online Commerce, Business Ethics, and Global Issues (8th ed.). Upper Saddle River, NJ: Pearson Education, Inc.