In what kind of partnership are all partners general partners?

Prepare for the Pennsylvania Title Insurance Test with interactive flashcards and multiple choice questions, each with hints and explanations. Ready yourself for the title insurance exam!

A general partnership is characterized by the situation where all partners have equal responsibility and authority in managing the business. Each partner in a general partnership not only contributes to the business's operations and decisions but also has unlimited liability for the debts and obligations of the partnership. This means that if the partnership incurs debt or is sued, each partner's personal assets could be at risk.

In contrast, a limited partnership includes both general and limited partners, where the general partners manage the business and bear unlimited liability, while the limited partners typically have limited liability and do not participate in management. A limited liability partnership, meanwhile, provides personal liability protection to all partners from the debts of the partnership. A business trust operates differently and does not fall under partnership law.

Therefore, the distinction of a general partnership is that it involves all partners being actively engaged in management and sharing equal liability. This is why the correct answer identifies a partnership where all members are general partners.

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