Which of the following roles best fits the situation? Apol wants to start or join a business but is not sure which business organization would be best. She has a large amount of capital but does not yet have any partners who can invest in or effectively manage the business. Neither a limited or general partner would be a good choice. General partner in a limited partnership. Limited partner in a limited partnership.
Which of the following roles best fits the situation?
Apol wants to start or join a business but is not sure which business organization would be best. She has a large amount of capital but does not yet have any partners who can invest in or effectively manage the business.
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Partnership:
A partnership is a type of business organization in which two or more people (referred to as partners) own and operate a business together. Partnerships can be a flexible and relatively simple way for individuals to start and run a business together. There are several types of partnerships, including:
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General Partnership: In a general partnership, all partners are responsible for managing the business and share in the profits and losses of the business. Each partner is also personally liable for the partnership's debts and obligations.
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Limited Partnership: In a limited partnership, there are one or more general partners who manage the business and are personally liable for the partnership's debts, and one or more limited partners who contribute capital to the business but have limited liability and are not involved in management.
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Limited Liability Partnership (LLP): An LLP is a type of partnership in which all partners have limited liability for the partnership's debts and obligations. However, each partner is still responsible for their own actions within the business.
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Joint Venture: A joint venture is a type of partnership in which two or more parties come together to undertake a specific business project or venture. Joint ventures can be formed for a limited period of time or for a specific purpose.
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