Definition:
A limited partner is a partner in a partnership who has a share of ownership but who 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. In contrast to a limited partner, a general partner takes part in the daily operations of the partnership and is personally responsible for the liabilities of the partnership.
Both limited partners and general partners receive a share in profits and losses of the partnership, based on their percentage share of the partnership.
