In which type of partnership do all partners participate in the management and share liability for losses?

In a general partnership, all partners are actively involved in the management of the business and share equal responsibility for the partnership’s liabilities. This structure allows each partner to take part in decision-making processes, enabling collaborative leadership and shared control over operations. Furthermore, when it comes to financial obligations or losses incurred by the partnership, each partner is personally liable, meaning their personal assets could be at risk if the partnership faces debts or legal issues.

On the other hand, a limited partnership would include both general partners and limited partners, where the general partners manage the business and bear full liability, while limited partners typically invest capital and have their liability restricted to the amount they invested. A sole proprietorship involves only one individual who manages the business and holds all responsibilities, making it different from partnerships. Lastly, a corporation is a distinct legal entity that limits personal liability for its owners (shareholders) and is managed by a board of directors and officers, separating ownership from management responsibility. Thus, the defining characteristics of a general partnership align seamlessly with the question requirements.