A partner in a company or venture who receives limited profits from the business and whose liability toward its debts is legally limited to the extent of his or her investment.
- In a limited partnership, the limited partner is liable only to the extent of the money he has invested.
- Another key benefit of the limited partnership, aside from the diminished liability of the limited partners and freedom of the general partner, is that it pays no income tax.
- The accountant should have verified that the information, or evidence of wrongdoing was correct, and insisted that the general partners notify the limited partners of the excess management fees.
limited partnership noun
- Example sentences
- The other partners are called limited partners, hence the name limited partnership.
- Instead of using the occasion of going public as a chance to simplify operations, many companies, real estate investment trusts, and limited partnerships are making themselves more impenetrable than ever.
- Income from energy may be derived via royalty trusts and master limited partnerships.
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