question.jpgIn Business Law

What is a limited partner?

A general partner is one of the two types of partner/owners of a limited partnership. In a limited partnership, some of the partners are silent investors with no actual management or control of the partnership. These are known as limited partners. The partners who are involved in the control and management of a limited partner, i.e. active in the company, are the general partners. The major difference that arises from this distinction is that only the general partners are personally liable for the limited partnership (the limited partners are afforded limited liability because they do not actively run or control the business).