Introduction

Question 1

What is a Partnership?

Answer 1

An association of two or more persons who have agreed to co-own an on-going business for profit. Can be at will or for a definite term or undertaking.

Question 2

Who Counts as a Person?

Answer 2

An individual, corporation, trust, estate, another partnership, association, and more.

Question 3

What Constitutes a Business?

Answer 3

Every trade, occupation, and profession

Question 4

General Partners

Answer 4

Are agents of the partnership who co-manage the partnership business, share in the profits and losses of the business, and are generally exposed to a personal liability for partnership debts and obligations.

Question 5

Limited Partners

Answer 5

Those who only have a role in limited partnerships. Are passive investors in that they are not agents of the partnership, do not participate in the management of the partnership business, and are not generally exposed to personal liability for the debts and obligations of the partnership.

Question 6

Types of Partnerships

Answer 6

Include:

• General partnership (GP)
• Limited partnership (LP)
• Limited Liability Partnerships (LLP)

Question 7

General Partnership (GP)

Answer 7

Consists only of two or more general partners.

Question 8

Limited Partnerships (LP)

Answer 8

Consist of at least one general partner and one limited partner

Question 9

Limited Liability Partnership (LLP)

Answer 9

When general partners are not exposed to the personal liability risks that would ordinarily attach. Any GP can become a LLP if there is a proper filing

Question 10

Who can be a “Partner”?

Answer 10

An individual, another partnership, or even a corporation can be a “partner” in a partnership.