General partnership and limited partnership involve the key term partner. In limited partnerships, there is at least one managing partner and at least one sleeping partner. The latter holds neither financial responsibility nor decision-making power.
In a general partnership, the partners are personally liable for the company’s liabilities and obligations on behalf of themselves and the other partners, but they also have the power to make decisions and commitments as well. The partners need to trust each other profoundly because they always bear the responsibility together. Perhaps for this reason, quite many general partnerships are small family businesses.
In these company forms, legislation gives free reigns on organising the company’s internal administration and power relations. Unless decided otherwise, all partners can make decisions for the company on their own, which speeds things up but is also a great risk. A partner working for the company can earn a salary, and also private withdrawals are possible.
The flip side of this arrangement is that partners are always responsible for the commitments made by the other partners as well. Each partner answers for the company’s liabilities with their personal assets.
Starting a limited or general partnership:
https://www.prh.fi/en/kaupparekisteri/yrityksen_perustaminen/avoinyhtiojaky.html
Partnerships Act:
https://www.finlex.fi/fi/laki/kaannokset/1988/en19880389_20151444.pdf