Limited partnership Essay Example | Topics and Well Written Essays - 250 words

Limited partnership - Essay Example One partner may be both a general and limited partner. When this is the case, all the rights and responsibilities that apply to a general partner also apply to him. However, the contribution that such a partner gives is protected in law just like that of any other limited partner. The limited partner only has interest in the property of the business. Should such a partner participate in the management of the business, they may risk losing their status as a limited partner, and thereby be liable for any debts in the company. Participating in the management of the business does not include any advice that such a partner gives to a general partner on matters that pertain to the business. The limited partner has an entitlement to inspect the records of the partnership at a reasonable time. They are also entitled in law to any piece of information regarding the partnership. Due to the fact that the limited partners are not allowed to participate in the running of the business, the general partners owe them a fiduciary