Types of partners

General Partner

Here, the partner is the risk bearer. Most times this partner or partners are the real owners. They are the ones that conceive the idea to run the business. General partners bear all the risk of the business down to their personal possessions.

This implies that when things go wrong when there is a litigation or bankruptcy the general partners are the ones that suffer the most. However, general partners will not lose their bedding and tools of the trade. As a result, they earn a higher return from the business.

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