Compare general, limited, and limited liability partnerships. Formulate reasons as to why a group of prospective partners might choose each in a few sentences
General partnership is a business structure where all partners share equal responsibility for the company's debt and liability. This can be a popular choice among friends or family members starting a business together as it allows for equal decision-making and shared profits.
Limited partnership is a business structure where at least one partner has limited liability, meaning they are not personally liable for the debts of the business. This can be beneficial for investors or silent partners who want to be involved in the business but have limited risk exposure.
Limited liability partnership is a business structure where all partners have limited liability, meaning they are not personally liable for the debts of the business. This can be advantageous for professional services firms, like law or accounting firms, as it allows each partner to be protected from the negligence or misconduct of their colleagues.
Overall, the choice of partnership structure depends on the specific needs and preferences of the prospective partners. General partnership may be chosen for simplicity and shared decision-making, limited partnership for investors looking to limit their liability, and limited liability partnership for professionals looking to protect themselves from the actions of their partners.