| General partner | Partner who assumes unlimited liability for the debts of the partnership; responsible for partnership management.
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| General partnership | Partnership in which all partners have mutual agency and unlimited liability for partnership debts.
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| Limited liability company (LLC) | Organization form that combines select features of a corporation and a limited partnership; provides limited liability to its members (owners), is free of business tax, and allows members to actively participate in management.
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| Limited liability partnership | Partnership in which a partner is not personally liable for malpractice or negligence unless that partner is responsible for providing the service that resulted in the claim.
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| Limited partners | Partners who have no personal liability for partnership debts beyond the amounts they invested in the partnership.
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| Limited partnership | Partnership that has two classes of partners: limited partners and general partners.
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| Mutual agency | Legal relationship among partners whereby each partner is an agent of the partnership and is able to bind the partnership to contracts within the scope of the partnership's business.
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| Partner return on equity | Partner net income divided by average partner equity for the period.
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| Partnership | Unincorporated association of two or more persons to pursue a business for profit as co-owners.
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| Partnership contract | Agreement among partners that sets terms under which the affairs of the partnership are conducted; also called articles of partnership if in writing.
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| Partnership liquidation | Dissolution of a partnership by (1) selling noncash assets and allocating any gain or loss according to partners' income-and-loss ratio, (2) paying liabilities, and (3) distributing any remaining cash according to partners' capital balances.
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| S corporation | Corporation that meets special tax qualifications so as to be treated like a partnership for income tax purposes.
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| Statement of partners' equity | Financial statement that shows total capital balances at the beginning of the period, any additional investment by partners, the income or loss of the period, the partners' withdrawals, and the partners' ending capital balances; also called statement of partners' capital.
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| Unlimited liability | Legal relationship among general partners that makes each of them responsible for partnership debts if the other partners are unable to pay their shares.
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