General Partnership

Definition:

An association between two or more people who agree to be co-owners of an organization in which each owner, or partner, will be equally and personally responsible for the debt and liability of the organization.

Examples:

After working in the same office for ten years, the lawyers decided to form a general partnership and continue to practice as one law practice.

Before signing a general partnership agreement, it’s a good idea to research the financial background of the other prospective owners to look for any history of bankruptcy or mismanagement.