what is the difference between mutual agency and limited partnership?

Question

it is all about in accounting

Answer 1

Mutual Agency is the right of all partners in a partnership to act as agents for the normal business operations of the partnership, with the authority to bind it to business agreements.

A Limited Partnership is a business organization with one or more general partners who manage the business and assume legal debts and obligations, and one or more limited partners, who are liable only to the extent of their investments. Limited partners also enjoy rights to the partnership's cash flow but are not liable for company obligations.

Answer 2

Mutual Agency Markets, a business unit of Liberty Mutual Group, consists of property/casualty and specialty insurance carriers that distribute their products and services primarily through independent agents and brokers.

provide a broad array of core property and casualty products, including a comprehensive set of personal and commercial coverages, which are available in most states.


limited patnership

A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners (GPs), there are one or more limited partners (LPs).

The GPs are, in all major respects, in the same legal position as partners in a conventional firm, i.e. they have management control, share the profits of the firm in predefined proportions, and have joint and several liability for the debts of the partnership. As in a general partnership, the GPs have apparent authority as agents of the firm to bind all the other partners in contracts with third parties.

Like shareholders in a corporation, the LPs have limited liability, i.e. they are only liable on debts incurred by the firm to the extent of their registered investment, and they have no management authority. The GPs pay the LPs the equivalent of a dividend on their investment, the nature and extent of which is usually defined in the partnership agreement.

Limited partnerships are distinct from limited liability partnerships, a business form more closely related to that of a corporation.

Answer 3

Mutual agents keep seperate books of accounts for each individual and partnership maintain only one set of books. In india limited partnership is yet to come.