Answer:
A limited partnership (LP)—not to be confused with a limited liability partnership (LLP)—is a partnership made up of two or more partners. The general partner oversees and runs the business while limited partners do not partake in managing the business. However, the general partner has unlimited liability for the debt, and any limited partners have limited liability up to the amount of their investment. Generally, a partnership is a business owned by two or more individuals. There are three forms of partnerships: general partnership, joint venture, and limited partnership. The three forms differ in various aspects, but also share similar features.In all forms of partnerships, each partner must contribute resources such as property, money, skills, or labor to share in the business' profits and losses. At least one partner takes part in making decisions regarding the business' day-to-day affairs.All partnerships should have an agreement that specifies how to make business decisions. These decisions include how to split profits or losses, resolve conflicts, and alter ownership structure, and how to close the business, if necessary. LPs are often formed to manage passively ran businesses and for raising money for investment purposes.
Step-by-step explanation: