Final answer:
Yes, a partnership can become a partner in another partnership, subject to the agreement of its members who may need to personally guarantee any new debts. This is more common in general partnerships where personal liability is shared, in contrast to limited liability partnerships (LLPs) where personal assets are protected.
Step-by-step explanation:
Is it possible for a partnership to be a partner? Yes, it is possible. In some cases, a partnership itself can become a partner in another partnership. This arrangement is subject to the agreement among the individual partners and may require that the original partnership's partners agree to personally guarantee any debts of the new partnership.
Partnership liabilities are an important consideration in this context. Typically, in a general partnership, each partner is personally and fully responsible for the debts and actions of the partnership. However, in a limited liability partnership (LLP), partners have their liability limited to their investment in the company, protecting their personal assets from the business's debts.
Partnerships can be relatively straightforward to establish, with simple start-up requirements and flexible management. They allow for the sharing of profits and management responsibilities among partners. However, disadvantages include the personal liabilities partners may face and the issues surrounding the continuation of the business should a partner leave or pass away.