This website uses cookies to ensure you have the best experience. Learn more

Limited Partnership In Business Essay

556 words - 2 pages

A limited partnership is a form of business that ensures that an investor has limited personal liability, and further enhances the ability to raise capital for the growth of the business. As compared to sole proprietorship that has the business owner bearing the entire liability, a limited partnership provides that the partner only bears a portion of the liability. This form of business offers personal asset protection, basically implying that a partner cannot have his/her assets being used to settle the business liabilities and debts, further contrasting a general partnership in which the partners are not considered as separate entities from the business, and their personal assets can be used in the settlement of debts and liabilities.
Although public companies ascertain that the shareholder is limited to liability to the contribution they have in the company in terms of shares, mobilizing funds provides a challenge, since the company needs to have satisfied certain legal and financial requirements before being listed in a stock exchange where funds can be gathered and other operations initiated. Another form of business ownership that presents a challenge in formation is a cooperative, which requires a number of shareholders as determined by the jurisdiction in which the cooperative is being formed. However, a limited partnership only requires an agreement among the members, stating their capital and management contributions alongside how profits are to be shared. Limited liability partnerships require that partners are from a certain professional field. However, limited partnership does not require the partners to be in a specific profession, meaning that this form of business is initiated by partners with similar interests regardless of their backgrounds. The ease of formation implies on the ease of termination,...

Find Another Essay On Limited Partnership in Business

Types of Paartnership Essay

535 words - 2 pages Corp. and the limited liability partnership! However, all partnership is a type of business organization in which two or more individual's pool money, skills, and other resources, and share profit and loss in accordance with the terms of the partnership agreement.References:http://www.businessdictionary.com/definition/partnership.html#ixzz3DmCXIQEehttp://smallbusiness.chron.com/limited-liability-partnership-vs-limited-liability-company-3736.html

Forming and Maintaining a Partnership Essay

1728 words - 7 pages (Section1 - Partnership Act, 1980) defines partnership as “a relation which subsists between persons carrying on a business in common with a view to profit”. It refers to both natural and artificial person thus, both individual and corporation are eligible to form a partnership. Joint Venture agreement does not necessarily create partnership. (Section 2 Limited Liability Partnerships Act, 2000) defines Limited Liability Partnership (LLP) as a

Business: What is a Sole Proprietorship?

1038 words - 5 pages everybody else and take no part in running the partnership. There are two basic types of partnerships: general partnerships and limited partnerships. A general partnership (the usual choice) is where each partner is fully active in the firm with a voice in its management. Each is an agent in the other partner(s) with full authority to act for the firm within the scope of its business. Each is fully liable for the debts of the business, each shares the

Business: Sole Proprietorship

1316 words - 5 pages of the other would need to be outlined in their agreement. Limited Partnership While in a general partnership, both partners have full managerial control, a limited partner has none. A limited partnership is comprised of general partners running the business and limited partners funding it. Essentially, a limited partnership is a general partnership with one or more investors. A limited partner receives financial benefits while only

Methods for Operating Businesses

1610 words - 7 pages outweighs profit and assets, the business will not flourish and the company will continuously stay in the black. Limited Partnership Limited Partnership: is defined as a partnership developed by two or more people but having one or more limited partners and one or more general partners. Only the limited partners are not bound to financial obligations except their investment. In a limited partnership the limited partner is only an investor. They

Wanting to Start a Business in Singapore

736 words - 3 pages , limited partnership and limited liability partnership. - General partnership: This business structure is similar to a sole proprietor. The business partners are personally liable for the business liabilities and debts. The partners share responsibility as one is held accountable for the actions of a fellow partner. It is not the best business structure in Singapore as it contains a lot of risks. - Limited partnership: In Singapore, this the most

Article: Advantages and Disadvantages of being in a Partnership

742 words - 3 pages advertising.Also in a partnership the running of the business can be shared if each partner takes an active role (unless the partner is 'silent' or is a limited partnership where they contribute capital but does not actively help in the running of the business). People also have the option of forming a limited partnership where one partner has unlimited liability, which means she/he is liable for the business debt. If the business were to become insolvent

Limited Liability

714 words - 3 pages distinct similarities but differ in liability disclosure.A limited liability company is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership (Small Business Administration, .n.d). The owners of an LLC are called members which can consist of one owner, two or more owners, and corporations. An LLC does not have to pay taxes. All profits are

Reconstitution and Dissolution of a partnership

2027 words - 8 pages share in the profit gained by the business carried out, but was liable for no more than his investment that he initially invested. It is also known as limited partnership. The other was the Societas, or ordinary partnership, in which all members were equally bound and responsible for the debts and could bind the firm. So now the principles were known. Later on statutes of 1865, 1890 and 1907 came for a clear view of partnership relationship. The

Advantages and disadvantages of a business partnerships - International Business - Essay

818 words - 4 pages partners in a business mean more useful skills because each person will have their own area. When it comes to partnership the running of the business can be shared if each partner takes an active role (unles one partner is quite or is very limited partnership where they can only contribute but does not actively help in the of any business. Partnership is has different feature such as agreement, two or more persons, lawful business and sharing

An Explanation of Different Business Types

1277 words - 5 pages have declined over the years but still 10% of all business firms in the United States still exist. Partnership agreements are drawn up in case if a partner dies to include profits and losses, duties of partnerships, manners of controversies and how they will be settled to divisions of assets. Types of partnership include a general partnership which has very active partners and assume responsibility for the firm. Limited partners include invest

Similar Essays

Examine The View That Marketing Theory And Concepts Portrayed In The Traditional Marketing Literature Have Only Limited Application In Guiding Small Business Marketing Practice

1689 words - 7 pages Every business wither it's small or big, aim to meet the needs of their actual and potential customers. In order for them to do this, they need to follow some sort of theory and concept. This assignment will be looking at the marketing theory and marketing concepts which are portrayed in the traditional marketing literature, and how they have limited application in guiding small business marketing practice.Marketing plays a vital role not only

Limited Liability Corporation And Limited Liability Partnership

1120 words - 4 pages , partnerships, and corporations. Aside from the common forms of business a number of other organizational forms exist that provide owners with limited liability; two of which are limited liability corporation and limited liability partnership. In this paper I will explain the roles of limited liability corporations and limited liability partnerships, and discuss under what circumstances I would choose one instead of the other if I were establishing my

Limited Liability Corporation And Limited Liability Partnership

1003 words - 4 pages Liability Partnership business structure is a form of ownership which each partner receives limited liability protection. An LLP and a general partnership are similar in that all of the partners take an active role in managing the day-to-day affairs of the business. Nevertheless, an LLP has the added benefit of providing limited liability, which is not available to a general partnership.A limited liability partnership protects each partner from

Limited Liability Corporation And Partnership Essay

581 words - 2 pages Limited Liability Corporation and PartnershipB. Nikki ElliottFIN/ 419 - Finance for Decision MakingThien NGOLimited Liability Corporation and PartnershipBusiness are being started every day in all parts of the world. The majority of the business started are done so in the form of sole proprietorship as well as general partnership. When businesses are started this way all it means is that the liability of the business falls directly on the owners