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Partnership Questions and Answers (Q&A)

Small business startup owners have important decisions to make in structuring their companies. The following are the significant differences between a Sole Proprietorship and a Limited Liability Company (LLC): a. OWNER CONTROL: A sole proprietor is responsible for making all the decisions regarding how to operate the company and use the company's resources; hence, has full control over the business. In contrast, the owners of an LLC hire individuals as managers to manage the company concerning the day-to-day running of the business. b. LIFESPAN: A sole proprietorship business ceases to exist when the sole proprietor dies, retires, or sells the business.


On the other hand, an LLC may live forever because it has an operating agreement that indicates provisions for continuing the company in the event of a member's death, withdrawal, or retirement. c. LIABILITY PROTECTION: Sole proprietors have unlimited liability for business debts, lawsuits, and other business-related obligations; hence, they are held personally liable for all debts incurred while operating the business. In contrast, operating as an LLC provides the owners of the company with limited liability protection against company debts and obligations. Creditors and parties that initiate a lawsuit against an LLC cannot go after an owner's assets as compensation for business-related debts.

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B. Wright

Always excited to learn and talk about new topics

LLP means a Limited Liability Partnership. It can be regarded as a sub-form of the real partnership. The partnership is a form of business agreement in which two or more parties come together to form a business and work together to achieve a particular business goal, and both profit and loss are shared equally by all the parties or according to the agreement reached during the formation of the business.

Limited liability partnership is a type of business agreement that evolved from the standard partnership. As the name implies, Limited liability partnership means each member of the partnership will have limited liabilities to share. One of the important things about limited liability partnership is that a member will not be responsible for the loss and misconduct of another person. This means if a partner makes the wrong decision about a particular thing, it will only affect him and not other partners, and the business will still continue even if business partners are changing.

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Corporate partnerships are also known as business structures. Just because you want to start a business, it doesn’t mean that you can use any structure. You will need to either consult a business expert or determine which structure will best identifies you and your business situation. Sole proprietorship means that one person or couple is in charge and owns the business.

General partnership refers to more than two people who are not married or are referred to as a couple and they own the business. Limited partnership refers to one person or group are considered to be general partners and are actively involved in the business. It also contains a limited person or partner who does not make many of the decisions or work a lot for the business.

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The answer to this is letter B. Mesher owed Kahn a fiduciary duty to fully disclose any information pertaining to the winding of a partnership. There is a need for Mesher to inform Kahn of the different actions that are related to the partnership. Since this is something that Mesher did not do, the court ruled out in favor of Kahn. There are some rules stating that if someone would not continue the partnership, the person should receive interest for the share.

For those who have limited partnerships, the general manager is more responsible for the needs of the business. The limited partnership act has been revised in order to be fair to those who are forming this type of company.

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Its A. Because only in case of change in name and principle place of business all the procedure is necessary. In case of brances intimation is sufficient. Plz read S. 60 and 61 carefully.

The ans given by website is wrong. Plz correct it.

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The loses and profit shall be distributed conformity with the agreement, with the absence of stipulation the sharing of profit and loses shall be in proportion of what he may have contributed. If there is industrial partner, he is excluded of the sharing of profit.

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TRUE. A partner may associate 3rd person concerning of his share in the partnership, this known as sub-partner. A sub-partner cannot affect the partnership because he has no say the management to the partnership. A sub-partner cannot also be part of partnership without the consent of the other partners.
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