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ORGANIZATIONS WITH PARTNERSHIP CHARACTERISTICS With surprising speed, states are creating special forms of business organizations that have partnership characteristics. These new organizations are being adopted by many small companies. These special forms are: limited partnerships, limited liability partnerships, limited liability companies, and “S” corporations. Limited Partnerships In a limited partnership , one or more partners have unlimited liability and one or more partners have limited liability for the debts of the firm. Those with unlimited liability are called general partners . Those with limited liability are called limited partners . Limited partners are responsible for the debts of the partnership up to the limit of their investment in the firm. This organization is identified in its name with the words “Limited Partnership,” or “Ltd.,” or “LP.” For the privilege of limited liability, the limited partner usually accepts less compensation than a general partner and exercises less influence in the affairs of the
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 201 taught by Professor - during the Spring '11 term at Montgomery.

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