What is Limited partnership?
In short
A limited partnership has at least one general partner, who manages the business and has unlimited personal liability, and at least one limited partner, whose liability is limited to their investment. It is formed by filing a certificate with the state.
Key takeaways
- Limited partners generally don't manage the business.
- Under older law, a limited partner who takes part in control can lose limited liability.
- A general partner can be a corporation or limited liability company to limit liability.
Where it's tested
REG: Business Law: Agency & Business Structures — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
In a general partnership, each partner's liability for partnership obligations is: