General partnership

A general partnership is when two or more people decide to work together and share all the responsibilities and profits. It's like having a best friend that you want to work with, and you both agree to help each other with everything. You might start a lemonade stand and one person squeezes the lemons while the other person sells the lemonade cups. You both agree to share the money you make and also share in any losses.

But just like when playing with friends, there can be some problems that come up. If one person doesn't do their part or takes more money than what was agreed upon, it can cause arguments and hurt feelings. That's why it's important to have clear rules and agreements in place before starting a general partnership.

A general partnership is different from a limited partnership, where there is one person who is in charge and takes most of the risks, while other people invest money and hope to make a profit, but have less control over the business.

Overall, a general partnership can be a great way to work with a friend and make money, but it's important to have clear rules and communication to avoid disagreements.