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General partnership
Partners who wish to share their income may form a general partnership. In this type of partnership, all the partners participate in the administration and management of the business, unless they designate one partner to take on this role.
The partners are each personally liable for certain debts and obligations of the business, regardless of their respective share of the business.
| Example |
| A supplier who is owed a debt by the partnership may demand that one partner pay the amount due. This partner will be held personally liable for the payment of the debt, but may then ask the other partners to repay their share. |
