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General Partner or Limited Partner

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Definition:

A general partner in a partnership takes part in the daily operations of the partnership and is personally responsible for the liabilities of the partnership. In contrast to a general partner, a limited partner in a partnership has a share of ownership but he or she takes no part in managing the partnership. A limited partner is not liable for any amount greater than his or her original investment in the partnership, while a general partner is liable for all of the partnership's liabilities.

Both limited partners and general partners receive a share in profits and losses of the partnership, based on their percentage share of the partnership.

 

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