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  • Essay / Limited Partnership in Business - 529

    A limited partnership is a form of business that ensures that an investor has limited personal liability and further enhances the ability to raise capital for business growth. Compared to a sole proprietorship in which the business owner assumes all of the liability, a limited partnership provides that the partner assumes only part of the liability. This form of business provides personal asset protection, which essentially means that a partner cannot use his or her assets to settle the liabilities and debts of the business, which is further in contrast to a general partnership in in which the partners are not considered separate entities of the business, and their personal assets can be used for the settlement of debts and obligations. Although public companies ensure that the shareholder is limited to liability for his or her contribution to the company in terms of shares, raising funds is a challenge because the company must have satisfied certain legal and financial requirements before being listed on a stock exchange where funds can be raised and other operations...