In a limited partnership, who manages the business?

In a limited partnership, the general partners are responsible for managing the business operations. General partners have unlimited liability, which means they are personally responsible for the debts and obligations of the partnership. Their managerial role allows them the authority to make decisions regarding the day-to-day operations, enter into contracts, and manage the financial aspects of the partnership.

Limited partners, on the other hand, typically do not participate in the management of the business. Their involvement is usually restricted to providing capital and sharing in the profits and losses of the partnership. This structure is designed to protect limited partners from liability exceeding their investment in the partnership, as they do not engage in the management processes that could expose them to greater risks. Consequently, a limited partnership distinctly separates the roles and responsibilities of general partners and limited partners, affirming that only general partners manage the business.