A general partnership is an arrangement by which two or more persons agree to share in all assets, profits, and financial and legal liabilities of a business. Such partners have unlimited liability, which means their personal assets are liable to the partnership’s obligations.
Breaking Down ‘General Partnership’ :
A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors.
There are two types of Partnership firms, registered and un-registered Partnership firm. It is not compulsory to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages. Partnership firms are created by drafting a Partnership deed amongst the Partners