MANAGEMENT

Detailed explanation-1: -Other contributors, known as limited (or silent) partners, provide capital but cannot make managerial decisions and are not responsible for any debts beyond their initial investment. Limited partners can become personally liable if they take a more active role in the LP.

Detailed explanation-2: -A silent partner is seldom involved in the partnership’s daily operations and does not generally participate in management meetings. Silent partners are also known as limited partners, since their liability is typically limited to the amount invested in the partnership.

Detailed explanation-3: -Partnerships and LLCs can have silent partners. Silent partners can also be referred to as limited partners (LPs). In a partnership designated as a limited partnership, the liabilities of the silent partner are limited to the amount of money or property that they invest.

Detailed explanation-4: -What Is a Limited Partner? A limited partner invests money in exchange for shares in a partnership but has restricted voting power on company business and no day-to-day involvement in the business. A limited partner’s liability for the firm’s debts cannot exceed the amount that they invested in the company.

Detailed explanation-5: -Concept of “limited liability partnership" The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.