Accounting for Partnerships (Pt 1 of 5) | Advanced Accounting | CPA Exam FAR - vTomb

Accounting for Partnerships (Pt 1 of 5) | Advanced Accounting | CPA Exam FAR

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Describe the characteristics of a general partnership, a limited partnership, and a joint venture. In a general partnership, the partners can bind the partnership into contracts, and the part- nership interest is similar to a personal asset that can be sold. General partners are personally liable for the debts of the part- nership, while a limited partner is only liable for the amount invested in the partnership. A joint venture occurs when two or more parties (agents) enter into an arrangement to pursue a specific purpose.

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