How does general partnership differ from limited partnership


Response to the following questions:

1. George, Burton, and Dillman have been partners for three years. The partnership is being dissolved. George is leaving the firm, but Burton and Dillman plan to carry on the business. In the final settlement, George places a $75,000 salary claim against the partnership. He contends that he has a claim for a salary of $25,000 for each year because he devoted all of his time for three years to the affairs of the partnership. Is his claim valid? Why or why not?

2. How does a general partnership differ from a limited partnership.

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Accounting Basics: How does general partnership differ from limited partnership
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