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JVani Medina
on Nov 13, 2024

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In a general partnership, each partner is individually liable to creditors for debts incurred by the partnership, to the extent of the partner's capital balance.

General Partnership

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed. This arrangement involves sharing the profits, liabilities, and decision-making processes of the business.

Individually Liable

The legal responsibility of a single person to pay off debts or fulfill obligations incurred.

Creditors

Creditors are individuals or entities that lend money or extend credit, and are owed repayment by debtors.

  • Grasp the liability implications for partners in a general partnership.
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Kiara BatistaNov 17, 2024
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