Limited Partner

A limited partner is a partner in a business venture that has no management authority. The limited refers to the amount of liability this person has in regards to his or her investment into the business venture. If a limited partner decides to exercise management authority in business, they will lose their limited partnership status.

Fast Facts

  • Limited partners are often bought out at a predetermined time through the arranged contract.
  • Some state laws require an extensive preexisting relationship between a limited partner and owners.

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