MANAGEMENT

Detailed explanation-1: -Limited partners do not have any personal liability. Business liability is limited to the amount contributed by the limited partner. Also, they have no say in the management of the company. The limited partners’ profit share and ownership stake are predetermined-as documented in the partnership agreement.

Detailed explanation-2: -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.

Detailed explanation-3: -The general partners are responsible for managing the business and making business decisions to achieve the stated business goals. The limited partners, also sometimes called silent partners, are responsible only for investing in the business, not running it.

Detailed explanation-4: -A limited partner is a limited partnership member who makes a contribution to the limited partnership and is only liable for the company’s liabilities up to the amount of this contribution. The general partner, on the other hand, is liable with all their assets.

Detailed explanation-5: -Liability is limited to the amount a limited partner has invested. The limited liability of a limited partner is ideal for an investor who wants to own a stake in a business without the risk of being exposed to unlimited liability.