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What is a General Partnership?
A partnership is generally defined as any arrangement in which two or more parties (such as a corporation or an individual) conduct business as “partners,” whether officially or not. In terms of asset protection, general partnerships can be even worse than sole proprietorships. Anything that one partner does affects all of the partners, because each partner of the general partnership is personally responsible for all obligations of the partnership. Thus, each partner’s exposure to potential liability is increased by the number of general partners in the business.