What are the differences between limited partner and general partner?

Banking & FinanceManagementCompanies/Organisations

The major differences between limited partner and general partner are as follows −

Limited partner

  • Liable to extend of investment made.

  • Ownership is predefined in agreement.

  • Minimal control partner.

  • Profit/loss is shared according to investment proportion.

  • It has complex structure.

  • More paperwork is required.

  • Less participation in day to day business activities.

General Partner

  • It has unlimited lability.

  • It has equal ownership right.

  • More control as compared to limited partner.

  • Profit/loss shared equally or according to agreement.

  • It has simple structure.

  • Less paperwork is required.

  • Major participation in day to day business activities.

raja
Published on 27-Jul-2020 11:38:24
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