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31 January, 10:27

Unlike a general partnership, in a limited partnership

All partners share equal financial responsibility for the firm's decisions

The inactive partner has limited liability for the business's debts

The partners must pay special business taxes

The business does not end with the death of a partner

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  1. 31 January, 11:42
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    In a limited partnership:

    The inactive partner has limited liability for the business's debts

    Explanation:

    In a general partnership all partners share equal financial responsibility for the firm's decisions.

    This means that all partners are supposed to have equal liabilities but hat is not the case for limited ones.

    In limited partnerships there is a general partner who owns most of the business and has most of the availability and the limited partner has pooled resources for the business but has very little personal responsibility to it.

    This model is usually there when the firm needs some investors and the person running business is usually the owner only.
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