Limited Partnership

Two or more investors who pool their money to develop or purchase income-producing properties. In a limited partnership, each limited partner's liability is limited to the amount of his or her investment. A limited partnership must have one general partner, who is personally liable for all debts. In return for being liable for the partnership’s debts, and thus bearing a disproportionate share of the risk, the general partner may be entitled to a disproportionate share of the partnership’s profits.

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Glossary of Terms

Limited Partnership

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