Question

write a brief paragraph and Compare general, limited, and limited liability partnerships. Formulate reasons as to why a group of prospective partners might choose each

Answer 1

When considering business structures, prospective partners may opt for general, limited, or limited liability partnerships based on their needs for control, liability, and capital investment. In a **general partnership**, all partners share equal responsibility for managing the business and are jointly liable for debts, making it suitable for those who wish to maintain control and have a hands-on approach to operations. Conversely, a **limited partnership** includes both general partners, who manage the business and have full liability, and limited partners, who provide capital but have restricted involvement and liability only up to their investment; this structure can attract investors seeking reduced risk while allowing active partners to maintain operational control. Lastly, a **limited liability partnership (LLP)** offers the benefit of limited liability protection for all partners against the negligence or malpractice of others, appealing to professional groups like lawyers and accountants, where personal liability could be a critical concern. Building their partnership structure around their specific goals—be it control, investment security, or liability protection—helps prospective partners choose the best option for their venture.