Which type of partnership involves equal sharing of profits and responsibilities?

A general partnership is a type of partnership where all partners are equally responsible for managing the business and share in its profits and losses. In this arrangement, each partner has a say in the day-to-day operations and decisions of the business, and they also share liability for the debts and obligations incurred by the partnership.

This equal sharing fosters a collaborative environment where partners contribute their skills and resources, which can be beneficial for the overall success of the business. Importantly, this structure means that each partner is personally liable for the debts of the partnership, reflecting the complete integration of ownership and management responsibilities.

In contrast, a limited partnership involves both general partners, who manage the business and have unlimited liability, and limited partners, who invest capital but do not participate in management and have limited liability. A joint venture typically involves a temporary partnership for a specific project, and a corporation is a separate legal entity that offers limited liability protection to its owners (shareholders) and has its own management structure.

Thus, the defining characteristic of a general partnership is the equal sharing of both profits and responsibilities among the partners.