Definition
Limited partnership is the business structure with general partners who manage and limited partners who invest. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Limited partnership. Once they agree it means “Business structure with general partners who manage and limited partners who invest”, the argument becomes a decision.
Common mistake
Using Limited partnership as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Limited Liability Company (LLC)
Business structure that combines the benefits of corporations and partnerships.
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Limited liability partnership (LLP)
Partnership structure that provides liability protection for partners.
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Leverage
Use of borrowed money or other resources to increase potential returns on investment.
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Liability
Legal obligation or debt that a company or individual is responsible for.
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