passive partner who has limited responsibility for the partnership's debts
A limited partnership is a form of
partnership similar to a
general partnership, except that in addition to one or more general partners (GPs), there are one or more limited partners (LPs).The GPs are, in all major respects, in the same legal position as partners in a conventional firm, i.e. they have management control, share the profits of the firm in predefined proportions, and have
joint and several liability for the
debts of the partnership. As in a general partnership, the GPs have apparent authority as
agents of the firm to bind all the other partners in
contracts with third parties.
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One of two kinds of partners in a limited partnership. Is personally liable for the debts of the partnership only to the extent of his or her investment in it and has little to no voice in its management.
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