Legal, Ethical, and Regulatory Issues in Business "Business Law"
1. General partnership is an unincorporated business organization setup by general partners who share profits and losses as per their partnership agreement (Cross LeRoy 410). The general partners are often engaged in the day-to-day operation of the entity unlike in corporation whereby ownership is separate from management. Additionally each general partner is often personally liable for the liability of other partners. Profits of the company are often shared equally however, this only happens when the partnership deed does not specify the ratio of profit sharing. In most case profit of the company is always shared with respect to the ratio of capital contributed by the partners into the business and the same case applies to sharing of loses. All partners in general partnership have equal