GENERAL PARTNER Meaning and
Definition
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A general partner is a term commonly used in the context of business partnerships, especially in the legal field of partnership law. A general partner refers to an individual or entity that participates fully in the management and operation of a partnership firm. Specifically, a general partner possesses the authority and responsibility to make decisions on behalf of the partnership, has direct liability for the company's debts and obligations, and shares in the partnership's profits and losses.
Unlike limited partners, who have limited liability and often lack participation in the day-to-day management of the business, a general partner is wholly accountable for the actions and debts of the partnership. This unlimited liability means that a general partner's personal assets can be used to satisfy any business-related debts or liabilities.
Furthermore, a general partner generally has the power to legally bind the partnership in contracts, agreements, and other business transactions. They may also contribute capital, skills, or expertise to the partnership and may have additional rights and responsibilities as specified in the partnership agreement.
In summary, a general partner is an active participant in a partnership who shares in the management, profits, and losses of the business while also bearing personal liability for the partnership’s debts and obligations.
Common Misspellings for GENERAL PARTNER
- feneral partner
- veneral partner
- beneral partner
- heneral partner
- yeneral partner
- teneral partner
- gwneral partner
- gsneral partner
- gdneral partner
- grneral partner
- g4neral partner
- g3neral partner
- geberal partner
- gemeral partner
- gejeral partner
- geheral partner
- genwral partner
- gensral partner
- gendral partner
- genrral partner
Etymology of GENERAL PARTNER
The word "general" comes from the Latin word "generalis", which means "pertaining to all" or "universal". It stems from the Latin word "genus", meaning "kind" or "race". The word "partner" originated from the Latin word "particeps", which means "partaking" or "one who takes part". In the context of business and law, the term "general partner" emerged to refer to an individual who takes part in the overall management and operations of a partnership, sharing unlimited liability for its debts and obligations.
