1) usually one of the owners and operators of a partnership, which is a joint business
entered into for profit, in which responsibility for management, profits and, most
importantly, the liability for debts is shared by the general partners. Anyone entering
into a general partnership (the most common business organization involving more
than one owner) must remember that each general partner is liable for all the debts
of the partnership. Furthermore, any partner alone can bind the partnership on contracts.
Example Joe Doright and Sam Sleazeball are partners in a retail store. Sleazeball
runs up a large American Express card bill in the name of the company while on a
toot in Las Vegas, contracts for purchase of $30,000 worth of dresses which are
out of fashion, and then takes off with a girlfriend for Tahiti. Doright is responsible
for the entire debt. 2) in the 40 states which recognize limited partnerships, the
managing partner or partners operate the partnership and are liable for its debts
beyond the value of the investments by limited partners. The general partners usually
receive a management fee and share in profits. Limited partners are prohibited by
law from participating in management, can lose more than their investments, and
get less than the general partners from unusually high profits.
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