Partners who are not legally responsible for unpaid partnership debts. A partnership that protects innocent partners from malpractice or negligence claims resulting from the acts of another partner. A...

Extracted text: Partners who are not legally responsible for unpaid partnership debts. A partnership that protects innocent partners from malpractice or negligence claims resulting from the acts of another partner. A partnership that has two classes of partners - limited partners and general partners. Limited partners cannot lose more than the amount they invested in the partnership, and have no active role except as specified in the partnership agreement. The agreement between partners that sets the terms under which the affairs of the partnership are conducted. 1. General Partnership 2. Mutual Agency 3. Partnership An unincorporated association of tw or more persons to pursue a business for profit. 4. Unlimited Liability of Partners 5. Partnership Contract The legal relationship among partners whereby each partner can commit: or bind the partner- ship to any contract within the scope of the partnership's 6. Limited Partners 7. General Partners normal line of business. 8. Limited Liability Partnership A financial statement that 9. Statement of Partners' Equity shows total capital balances at the beginning of the period, any additional investments by partners, the income or loss of the period, the partners' withdrawals, and the ending capital balances. 10. Limited Partnership Partners who assume unlimited liability for the debts of the partnership. Partnership in which all partners have mutual agency and unlimited liability. The legal relationship among general partners that makes each of them responsible for paying the partnership debts if the other partners are unable to pay their shares.