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Simple English definitions for legal terms
commercial partnership
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A quick definition of commercial partnership:
A commercial partnership is when two or more people own and run a business together to make money. There are different types of partnerships, like a general partnership where everyone is equal, or a limited partnership where some people only invest money and don't manage the business. If someone pretends to be in a partnership but isn't really, they can still be held responsible for debts.A more thorough explanation:
A commercial partnership is a type of partnership where two or more people jointly own and operate a business for profit. The partners agree to share the profits and losses of the business proportionally.
For example, two friends decide to start a clothing store together. They form a commercial partnership and agree to share the profits and losses equally. They both contribute money to start the business and work together to run it.
Another example is a law firm that registers as a limited liability partnership. The partners are not personally liable for the negligent acts of other partners or employees not under their supervision.
Commercial partnerships are different from nontrading partnerships, which are partnerships of employment or occupation that do not involve buying and selling.
Overall, commercial partnerships are a common way for people to start and run a business together while sharing the risks and rewards.