Definitions for "Limited Partnerships"
A form of business organization where the limited partners are only liable to the extent of the amount of money that they invested in the partnership. Limited partners are not involved in the management decisions of the business but are entitled to the flow-through of income and expenses for tax purposes.
An arrangement between a general partner and a limited partner. The general partner manages the project, and collects fees and a percentage of profits and income. Limited partners invest in the project but have limited liability; they are not involved in the day-to-day management of the project, and they receive a percentage of the profits and income. In general, they also receive tax benefits.
A partnership co-owned by a general partner and limited partner(s). The general partner manages the business operations. Limited partners have limited liability up to their investment and are not involved in daily activities.