Explain the types of partners in a limited partnership. What are their liabilities? Who is permitted to join as a partner to such a partnership?

What will be an ideal response?

A limited partnership has two types of partners: 1. general partners, who invest capital, manage the business, and are personally liable for partnership debts, and 2. limited partners, who invest capital but do not participate in management and are not personally liable for partnership debts beyond their capital contributions. A limited partnership must have one or more general partners and one or more limited partners. There are no upper limits on the number of general or limited partners allowed in a limited partnership. Any person—including natural persons, partnerships, limited partnerships, trusts, estates, associations, and corporations—may be a general or limited partner. A person may be both a general partner and a limited partner in the same limited partnership.