Final answer:
A partner's economic interest is their share of the profits and losses, and any surplus funds left after the partnership is dissolved. Economic and property rights are essential for economic growth, while partnerships carry the risk of shared profit and personal liability.
Step-by-step explanation:
A partner's economic interest is her share of the profits and losses plus any surplus, which is any remaining funds after dissolution. The economic interest reflects the right to share in the financial benefits from the ownership of the enterprise, this can include profits, dividends, and the appreciation of the entity. The surplus refers to any residual assets that would be distributed among the partners after the partnership’s debts have been paid off in the event of dissolution.
In a broader scope, the concept of property and economic rights is crucial for economic growth, enabling individuals and firms to utilize their property for its highest and most productive use. These rights assure them the ability to enter into contracts, ultimately supporting market transactions and contributing to the economic development of societies. Meanwhile, the disadvantages of a general partnership include sharing profits with partners and bearing joint personal liability for business debts, which are vital considerations when evaluating one's share and risk in a partnership.