BROWSE

General Partnership

Definition

In most countries, a general partnership is an association of persons or an unincorporated company with the following major features...

What is a 'General Partnership'

A general partnership is an arrangement by which partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership's obligations.

Explaining 'General Partnership'

Since all partners have unlimited liability, even innocent partners can be held responsible when another partner commits inappropriate or illegal actions. This fact alone demonstrates how an investor should heed caution when deciding on whether to become a general partner.


Further Reading


The economics of infrastructure finance: Public-private partnerships versus public provision
www.econstor.eu [PDF]
… The use of Public-Private Partnerships (PPPs) to replace and complement the public provision … privatized public utilities, such as electricity distribution, water and sanitation or general-use seaports … 57.04 percent of property of the sponsor (Toll Roads Investors Partnership II), see …

Partnership, equity-financing and Islamic finance: whither profit-loss sharing?Partnership, equity-financing and Islamic finance: whither profit-loss sharing?
papers.ssrn.com [PDF]
… The use of Public-Private Partnerships (PPPs) to replace and complement the public provision … privatized public utilities, such as electricity distribution, water and sanitation or general-use seaports … 57.04 percent of property of the sponsor (Toll Roads Investors Partnership II), see …

Trends in park tourism: Economics, finance and managementTrends in park tourism: Economics, finance and management
www.tandfonline.com [PDF]
… The use of Public-Private Partnerships (PPPs) to replace and complement the public provision … privatized public utilities, such as electricity distribution, water and sanitation or general-use seaports … 57.04 percent of property of the sponsor (Toll Roads Investors Partnership II), see …

The economics of small business finance: The roles of private equity and debt markets in the financial growth cycleThe economics of small business finance: The roles of private equity and debt markets in the financial growth cycle
www.sciencedirect.com [PDF]
… The use of Public-Private Partnerships (PPPs) to replace and complement the public provision … privatized public utilities, such as electricity distribution, water and sanitation or general-use seaports … 57.04 percent of property of the sponsor (Toll Roads Investors Partnership II), see …

The economics of the private equity marketThe economics of the private equity market
heinonline.org [PDF]
… The use of Public-Private Partnerships (PPPs) to replace and complement the public provision … privatized public utilities, such as electricity distribution, water and sanitation or general-use seaports … 57.04 percent of property of the sponsor (Toll Roads Investors Partnership II), see …

The political economics of investment Utopia: public–private partnerships for urban infrastructure financeThe political economics of investment Utopia: public–private partnerships for urban infrastructure finance
www.tandfonline.com [PDF]
… The use of Public-Private Partnerships (PPPs) to replace and complement the public provision … privatized public utilities, such as electricity distribution, water and sanitation or general-use seaports … 57.04 percent of property of the sponsor (Toll Roads Investors Partnership II), see …

The economics of public-private partnershipsThe economics of public-private partnerships
www.jstor.org [PDF]
… The use of Public-Private Partnerships (PPPs) to replace and complement the public provision … privatized public utilities, such as electricity distribution, water and sanitation or general-use seaports … 57.04 percent of property of the sponsor (Toll Roads Investors Partnership II), see …

Financing of the trans-European high-speed rail networks:: New forms of public–private partnershipsFinancing of the trans-European high-speed rail networks:: New forms of public–private partnerships
www.sciencedirect.com [PDF]
… The use of Public-Private Partnerships (PPPs) to replace and complement the public provision … privatized public utilities, such as electricity distribution, water and sanitation or general-use seaports … 57.04 percent of property of the sponsor (Toll Roads Investors Partnership II), see …

The basic public finance of public–private partnershipsThe basic public finance of public–private partnerships
academic.oup.com [PDF]
… The use of Public-Private Partnerships (PPPs) to replace and complement the public provision … privatized public utilities, such as electricity distribution, water and sanitation or general-use seaports … 57.04 percent of property of the sponsor (Toll Roads Investors Partnership II), see …



Q&A About General Partnership


Why should investors be cautious when deciding to become a general partner?

Investors should be cautious because they can be held responsible for inappropriate or illegal actions committed by another partner.

What is a general partnership?

A general partnership is an arrangement by which partners conducting a business jointly have unlimited liability.

Is there any way that innocent partners can avoid being held responsible for the actions of others?

Yes, if the innocent party dissociates themselves from the company they are no longer liable for its debts and obligations.

How does this arrangement differ from other types of partnerships?

Other types of partnerships do not have unlimited liability.