Definition:
All business partnerships have at least two partners. Some business partnerships have more than one kind of partner, including general partners, and limited partners.
A limited partner has certain legal rights to benefit from income and profits, but has no legal liability for the debts of the partnership.
A limited partner is not actively involved in the day-to-day decisions and operations of the partnership.
Examples:
Because she was a limited partner in Jones Industrial Cement, Latisha Sharpley did not have to worry about paying the partnership's credit card bills.
