An agreement by two or more person to carry on, as co-owners, a business for profit
Pass-Through Entity
A business entity that has no tax liability. The entity's income is passed through to the owners, and the owners pay taxes on the income.
Are partners liable for personal liability
Partnerships are not liable for the personal debts and liablilities of all the rest partners
Dissolution
The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or, in a corporation, acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration of a time period stated in a partnership agreement or a certificate of incorporation; or (4) judicial decree
Winding Up
The second of two stages in the termination of a partnership or corporation. Once the firm is dissolve, it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.
Limited Partnership
A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable only up to the extent of their contributions).
General Partner
In a limited partnership, a partner who assumes responsibility
Only a managing partner has a right to complete information about the conduct of partnership business.
True or False
False
Each partner has the right to sell partnership property as if he or she was the exclusive owner.
True or False
False
A general partner is severally liable for all partnership obligations.
True or False
True
In winding up a general partnership, creditors are paid after partners receive their capital contributions.
True or False
False
A general partner is personally liable for partnership debts if its assets are insufficient to pay its creditors
True or False
True
Most States require a limited partnership to file a certificate of limited partnership with the appropriate state office.
True or False
True
In a limited partnership, the liability of a limited partner is limited to the amount of capital he or she invests in the partnership.
True or False
True
The death of a limited partner dissolves a limited partnership.
