Limited partnership

A limited partnership exists when a minimum of two partners join forces to conduct a business in which the management rests with the ‘general partner’, who also bears unlimited liability for the debt and obligations. Besides the general partner, a limited partnership exists of any number of ‘limited partners’. The liability of the limited partners, who are sometimes referred to as ‘silent partners’, is limited to the total amount of their investment. Limited partners do not receive dividends, but enjoy direct access to the flow of income and expenses. Limited partners do not have voting power over the day-to-day operations. Those rights are in the hands of the general partner.