Course CONSTRUCTION CONTRACT DOCUMENTS Describe the roles of

Course: CONSTRUCTION CONTRACT DOCUMENTS

Describe the roles of the limited partners in a Partnership organization and when the form of a Partnership would change to a Proprietorship?

Solution

Answer:-

Role of limited partners in a partnership organization:- A partnership arises when two or more people co own a business and share in the profits and losses of the business. In a partnership each person contributes some thing to business like money , property. A limited partnership allows each partner to restrict his or her personal liability to the amount of his or her business investment. Not every partner can benefit from this limitation. At least one participant must accept general partnership status, exposing himself to full personal liability for the business\'s debts and obligations. The general partner retains the right to control the business, while the limited partners do not participate in management decisions.

A partnership can change in proprietorship if one person purchase all share of the company . that person will be owner of the company .Proprietorship has only one owner.   Profit and loss of company will effect only one person.