What Is the Difference Between a General Partner and a Limited

question 135

Essay

What is the difference between a general partner and a limited partner? Give an example of a situation in which a person would want to be a limited partner.

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Definitions:

Investment

The allocation of resources, usually financial, in expectation of a future return or profit.

Equity

The value of an ownership interest in a company, represented by the portion of the company's assets that would be distributed to shareholders after settling all liabilities.

Acquisition

The process by which one company takes over another and clearly establishes itself as the new owner.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its net identifiable assets, representing elements like reputation, customer loyalty, etc.