What is general partnership?

General Partnership — A general partnership is a type of partnership in which the liability of every partner is unlimited. The firm's creditors can realise their debts from the personal property of any partner. The key features of general partnership are:

1. Unlimited Liability — Every partner has unlimited liability for the debts of the firm.

2. Active Participation — Every partner can take active part in the management of the firm's business, unless otherwise agreed upon between the partners.

3. No Separate Legal Entity — The firm does not have a separate legal entity independent of the partners.

4. Dissolution — Death, lunacy or bankruptcy of a partner dissolves the firm.

5. Need Not Be Registered — Registration is not compulsory in a general partnership.