What is the general partner?

General Partner is a partner in an unregistered company that has unlimited responsibility. General partners participate in business operation every day and decide on management and administration. Business can be set up with a group of general partners and can also be added to the company by general partners later, such as if the company wants to expand and needs infusion of new capital.

In the general partnership, all business partners are general partners. They share liability, including legal liability, and the measures taken by one partner have an impact on all. For example, if the General Partner uses funds to buy an outdated product that is not sold and introduces the company into debt, all partners are responsible for resolving the debt. Likewise, all partners also share profits from business.Artner. Limited partners invest so that they have a business share, but are not involved in the management decision, even if they can vote on general partners. AfterWhich is involved in business administration, they become general partners and also share legal liability. Partners with restrictions do not have legal responsibility and receive a share in profit in exchange for their investment in business.

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shares that the partner receives is based on the percentage of this partner's investment. In business with two people where both partners contributed the same, the profits would be divided by 50-50. On the other hand, the general partner could have a 60% share, while two other partners have 30% and 10%, which would change the division of business profits. The conditions are determined when the partnership is introduced or modified if you want to satisfy the outgoing or entering partner.

consent to the general partner involves accepting considerable responsibility. Responsibility for debts can monitor general partners even after their businesses dissolve. It is important to go to business with people who are trustworthy,and set limits to avoid situations in which general partners decide which affect the whole consultation or approval. Some people may prefer to be limited partners, which would be an investment risk to gain a share in the company without taking responsibility, even if they can do less in the long run.