limited partnership
Tiered liability venture
A limited partnership is a business structure with two types of partners: general partners who manage operations and bear full liability, and limited partners who invest capital but have liability only up to their investment amount.
Limited partners typically cannot participate in daily management without losing their protected status.
She invested as a limited partner in the real estate fund.
Obligation to act loyally
- legal entityOrganization with rights
- business registrationOfficially recording a company
- corporate governanceCompany direction and control
- dissolutionBreaking up completely
regulatory requirements · state law · duty of care · indemnification
Capital for unlisted companies
- venture capitalStartup growth financing
- investment fundPooled capital for securities
- hedge fundPrivate investment partnership
- fund managementOverseeing pooled investment capital
management fee · hurdle rate · clawback · IRR · drawdown · dry powder · vintage year · NAV
Ownership portion in enterprise
- profit sharingDistributing earnings to workers
- voting rightsEntitlement to elect officials
- co-investmentShared financial participation
- admissionEntry or confession
Legal income-shielding arrangement
- depreciationAsset value reduction over time
- tax basisInvestment's value for calculations
- estate planningPreparing asset distribution posthumously
- gift taxCharge on large presents
Category of financial instruments
- illiquidityDifficulty converting to cash
- institutional investorEntity investing pooled capital
- pension fundPooled retirement investment
- endowmentPermanent donated fund
fiduciary duty
Obligation to act loyally
- legal entityOrganization with rights
- business registrationOfficially recording a company
- corporate governanceCompany direction and control
dissolution · regulatory requirements · state law · duty of care · indemnification
private equity
Capital for unlisted companies
- venture capitalStartup growth financing
- investment fundPooled capital for securities
- hedge fundPrivate investment partnership
fund management · management fee · hurdle rate · clawback · IRR · drawdown · dry powder · vintage year · NAV · J-curve
equity stake
Ownership portion in enterprise
- profit sharingDistributing earnings to workers
- voting rightsEntitlement to elect officials
- co-investmentShared financial participation
admission · withdrawal · buyout · transferability · capital account
tax shelter
Legal income-shielding arrangement
- depreciationAsset value reduction over time
- tax basisInvestment's value for calculations
- estate planningPreparing asset distribution posthumously
asset class
Category of financial instruments
- illiquidityDifficulty converting to cash
- institutional investorEntity investing pooled capital
- pension fundPooled retirement investment
- business termsfranchising, revenue stream, board meeting, gross margin, markdown
- business typesbig business, business, corporation, sole proprietorship, nonprofit
- small businessesbakery, restaurant, salon, boutique, florist
- business entitiescorporation, LLC, sole proprietorship, company, subsidiary
- business structuresjoint venture, conglomerate, LLC, holding company, subsidiary
- legal entitiescorporation, law firm, LLC, company, nonprofit
limited partnershipgeneral partnership
Jointly owned, jointly liable business
corporation · sole proprietorship · public company · general partner · worker cooperative
limited, partnership, limit, partner, limits, limiting, limiter, limitless, limitation