TYPES OF PARTNERSHIPS

Directions: Define each type of partnership and give an example in the top boxes, and in the bottom
boxes list the advantages and disadvantages of partnerships.

General Limited Limited Liability

Each partner is responsible for All partners involved are only

Two partners share business, but some are less responsible for their own debts.
responsibility for running a liable than others.
business. As well as the liability.

Advantages Disadvantages

General: Having someone else to help run the
business.
Limited: Each person is responsible for only the
money they invest.
LLP: All partners are responsible for their own
personal savings.
LLP: Not widely available and relatively new.
Limited: A limited partner isn’t as involved in the
business as they may want to be.
Genteal Sharing profits, sharing liability.