Partnership Accounts
Chapters in this video
- 0:00 The partnership account entity rule
- 1:06 The partnership agreement: supreme law of the account
- 1:45 General partners: unlimited liability and active management
- 2:11 Limited partners: passive role and capped liability
- 3:01 The trading trap: why wealth does not equal authority
- 3:55 The liability shield destruction: active management consequences
- 4:37 Rapid-fire exam recap
What this video covers
- What document controls trading authority in a partnership account, and why individual partner wishes do not matter
- Why the account must be opened in the partnership entity name, not the names of individual partners
- The liability split: general partners take unlimited liability while limited partners are capped at their investment amount
- Why limited partners are strictly unauthorized to trade by default, and the sole exception that could grant them authority
- How active management decisions by a limited partner instantly destroy their limited liability protection
- The minimum general partner requirement: every partnership must have at least one general partner
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