general partners
Unlimited liability owners
General partners are members of a partnership who bear full personal liability for the business's debts and obligations.
Unlike limited partners, who invest capital but stay hands-off, general partners actively manage operations and can bind the partnership legally.
In a limited partnership, at least one general partner must exist: The general partners made all the day-to-day decisions while the limited partners simply collected distributions.
- decision-making authorityPower to determine outcomes
- personal liabilityOne's own legal responsibility
- unlimited liabilityPersonal obligation for all debts
- debt obligationsAmounts owed to lenders
- fiduciary dutyObligation to act loyally
asset protection · strategic planning · joint venture · financial exposure · leadership roles · voting rights · business development · profit sharing · sweat equity · skin in the game · resource allocation · risk assessment · conflict resolution · due diligence · performance evaluation · handshake · signature · contract
general partnerssilent partners
Investors without management role
sleeping partners · investors · shareholders · creditors · employees
general partnerssleeping partners
Uninvolved business financiers
absentee owners · angel investors · institutional investors · retail investors
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