Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 11 - No. 23)
What is the major distinction between a general partnership and a limited partnership?
The level of liability of the partners.
The initial capital contribution required.
The number of partners allowed.
The type of business activity they can engage in.
Explanation
The key difference lies in the liability of the partners; general partners have unlimited liability, while limited partners have limited liability.
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