John,Sam,and Mark decided to form a limited partnership (LP)with John being the general partner,and Sam and Mark as limited partners.The LP is sued and the court awards $100,000 against the LP.All three partners are jointly and severally liable.

Jointly and Severally

A legal term indicating that parties can be held responsible together or individually for a debt or obligation.

Limited Partnership (LP)

A Limited Partnership (LP) is a form of partnership consisting of at least one general partner, who manages the business and is personally liable, and one or more limited partners, who contribute capital and share in profits but have limited liabilities.