What is a Limited Partnership?
A limited partnership is one whereby in addition to one or more general partners there are one or more limited partners. It is one in which only one partner is required to be a general partner.
The general partners are, in all major respects, in the same legal position as partners in a conventional firm and have management rights, rights to share the profits and have joint and several liability for the debts of the partnership. They also have authority as agents to bind all other partners in contracts with third parties that are in ordinary course of the partnership's business.
Limited partners, like shareholders in a corporation, have limited liability, which means that they are only liable on debts incurred by the firm to the extent of their registered investment and as such have no management authority.
Limited partners are paid a return on their investment by the general partners and thus general partners carry more liability than their limited counterparts.
Limited partnerships are different from limited liability partnerships, in which all partners have limited liability.