general (adjective, gen-er-al, \ ˈdʒenrəl \) partnership (noun, part-ner-ship, \ ˈpɑːrtnərʃɪp \)
Definition: is an unincorporated company co-owned by two or more individuals that hold the official titles of general partners. Inside a general partnership, it’s the duty of all co-owners to actively participate in the company’s management, as they are jointly liable for all organization’s obligations, and are required to accept responsibility for all actions performed by other general partners. If an individual joins a general partnership, he or she can be sued for the debts of the entire organization along with its other owners regardless of whether he or she have created the debt or not.
In a Sentence:
- After Joseph formed a general partnership with his best friend, he started to think about whether he needs to increase his legal protection.
- The creation of the general partnership presented an opportunity for free discussion between the owners of the enterprise, as all of them contributed to the company’s success.
- Opting for a general partnership structure will allow your company to have several individuals making key business decisions. That’s why you have to be extremely cautious when choosing who to start such a venture with.
- Colleagues have chosen to conclude a general partnership, since it most fully meets their mutual interests.
- The general partnership is rapidly losing its popularity due to the spread of absolute financial responsibility to all members of the community.
Synonyms and related words: limited liability partnership, general partner, limited partnership, partnership insurance
