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Fifty lawyers form a general partnership with interests of two percent each. The partnership delegates exclusive management authority to five of the part- ners. How will the organization be classified for tax purposes? 4.
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50 lawyers form general partnership with interests of 2% each. the partnership delegates exclusive mangement authority to five of the partners. The organisation classified as Limited liability Partnership for tax purposes. As fifty lawyers having the interest in firm but only 5 partner having responsibility for day to day operations i.e. exclusive mangement authority. In contrast to a general partner, a limited partner is a partner in a partnership who has a share of ownership but who takes no part in managing the partnership A limited partner is not liable for any amount greater than his or her original investment in the partnership In contrast to a limited partner, a general partner takes part in the daily operations of the partnership and is personally responsible for the liabilities of the partnership Hence it is classified as limited liability partnership

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