Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 22 - No. 45)
What distinguishes a 'general partner' from a 'limited partner' in a partnership?
General partners invest more capital.
General partners manage the daily operations, and limited partners do not.
General partners have limited liability, and limited partners have unlimited liability.
General partners receive a higher percentage of profits.
Explanation
General partners are typically involved in managing the business, while limited partners may be investors with limited liability.
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