Partnerships

Question 1

What is a limited partnership

Answer 1

a partnership of
1.at least one general partner
2. at least one limited partner
3. formed under procedures specified by law

Question 1

How is a general partnership formed?

Answer 1

When two or more agree to carry on a business for profit

Question 2

what is the difference between a general partner and a limited partner in an LP

Answer 2

a general partner controls the business. A limited partner contributes money, but retains no management rights

Question 3

dissociation

Answer 3

a partners withdrawal from the partnership

Question 4

what does a dissociating partner receive from the partnership?

Answer 4

what they would receive if the partnership were sold or liquidated, minus any damages if the dissociation were wrongful

Question 5

is a dissociating partner still liable for partnership obligations?

Answer 5

Yes, for any obligations entered into before dissociation and for obligations within 2 years after dissociation if the creditor reasonably believed the person to still be a partner and had no notice of dissociation