Limited Partnerships Funds: All You Need To Know
A partnership having two or more participants is known as a limited partnership (LP), which should not be confused with a limited liability partnership (LLP). While limited partners do not participate in corporate management, the general partner controls and manages the enterprise. In contrast, the limited partners of a limited partnership fund have limited liability for the debt up to the amount of their investment and the general partner of the limited partnership has unlimited liability. Learning about Limited Partnerships Funds Both general partners and limited partners are necessary for the existence of a limited partnership. The liability of general partners is limitless, and they have complete managerial authority over the company. Limited partners have little to no management responsibility and are only legally liable for the amount of their investment in the LP. Different Types of Partnerships A partnership usually has two owners. General partnerships, limite