A type of partnership with at least one general partner and at least one limited partner. A general partner is responsible for managing the partnership but maintains personal liability for the partnership's debts. A limited partner generally does not participate in managing the partnership, but enjoys limited personal liability.
Definition from Nolo’s Plain-English Law Dictionary
A business structure that allows one or more partners (called limited partners) to enjoy limited personal liability for partnership debts while another partner or partners (called general partners) have unlimited personal liability. The key difference between general and limited partners is with management decisionmaking--general partners run the business and limited partners (who are usually passive investors) are not allowed to make day-to-day business decisions. If they do, they risk being treated as general partners with unlimited personal liability.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:19 pm