A General Partnership is an association of two or more people (individuals or corporations) carrying on business for the purpose of earning a profit. In a general partnership the partners share in the operation of the business and they are jointly and severally liable for the debts and obligations of the partnership.
A legally enforceable promise to become liable for the debt of another. Most bank loans to corporations are backed by the personal guarantee of the shareholders of the corporation. If the corporation defaults on the debt, the shareholders are then personally liable to pay the debt on behalf of the corporation.