General partners

Definition

General partners are individuals in a partnership who have unlimited personal liability for the debts and obligations of the business and actively participate in its management. They share equally in the profits, losses, and decision-making processes related to the business.

Related terms

Limited Partnership:

A form of partnership consisting of at least one general partner who manages the business and assumes legal debts and obligations, and one or more limited partners who are liable only to the extent of their investments.

Liability:

The state of being legally responsible for something, such as a debt or obligation.

Profit Sharing:

A method where profits (and losses) of a business are divided among its owners or shareholders, typically according to their agreed-upon percentages or contributions