limited partnership


Definition of limited partnership

: a partnership having one or more general partners and one or more limited partners

Examples of limited partnership in a Sentence

Recent Examples on the Web

Purdue — controlled through layers of limited partnerships, holding companies and trusts — is at the center of the family’s web. Washington Post, "Where did the Sacklers move cash from their opioid maker?," 5 Sep. 2019 Many companies set up limited partnerships and subsidiaries to cap shareholder liabilities, and many wealthy individuals manage investments through opaque entities. Adam Geller,, "Sackler family’s web makes it hard to track cash from Purdue Pharma," 2 Sep. 2019 Excluded are real estate investment trusts, limited liability companies, limited partnerships, business development companies, closed end investment firms, and companies that lost money in the quarter ended on or before April 30, 2019. Fortune, "Methodology for 100 Fastest-Growing Companies," 15 Aug. 2019 Purdue — controlled through layers of limited partnerships, holding companies and trusts — is at the center of the family's web. CBS News, "How Purdue Pharma's Sackler family hid their cash," 30 Aug. 2019 Purdue — controlled through layers of limited partnerships, holding companies and trusts — is at the center of the family’s web. Washington Post, "Where did the Sacklers move cash from their opioid maker?," 30 Aug. 2019 Canel’s new landlord is a limited partnership — a popular real estate investment vehicle. Los Angeles Times, "Seniors facing eviction fear homelessness and isolation as California’s housing crisis rolls on," 29 Aug. 2019 The city argued in court documents that the Huntington Beach Industrial Park limited partnership was dissolved in 1999, so the CC&Rs would not apply to the homeless shelter. Priscella Vega, Daily Pilot, "Huntington Beach homeless shelter plan is on hold and may be scrapped amid lawsuit challenging location," 13 Aug. 2019 The suit also names Sang Hun Shim, the business's owner, and Shady Wi Investment, the domestic limited partnership that owns the property in the 10900 block of Shady Trail. Lavendrick Smith, Dallas News, "City files lawsuit to shut down Dallas massage parlor after raid, prostitution arrest," 16 July 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'limited partnership.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of limited partnership

1791, in the meaning defined above

Keep scrolling for more

Learn More about limited partnership

Statistics for limited partnership

Last Updated

18 Sep 2019

Look-up Popularity

Time Traveler for limited partnership

The first known use of limited partnership was in 1791

See more words from the same year

Keep scrolling for more

More Definitions for limited partnership

limited partnership


Financial Definition of limited partnership

What It Is

A limited partnership is a business formation that limits the liability of certain owners.

How It Works

A limited partnership is made up of partners. In most cases, some of the partners are general partners and others are limited partners. One or a handful of general partners manage the day-to-day operations of the business and are personally liable for the business's debts. They act as the core management team for the business and obligated to keep the limited partners informed about the condition and performance of the business. They can incur debt or obligations on behalf of the partnership and are personally liable for those debts or obligations.

Unlike general partners, the limited partners have no daily management role, cannot encumber the business and are not personally liable for the business's debts. Instead, they receive a share of the firm's profits in exchange for their capital investments, and usually the worst that can happen is that the value of their investment falls to zero. (It is important to note that limited partners who take managerial roles could be considered general partners in the eyes of the law.)

Why It Matters

Limited liability is what often attracts investors to limited partnerships. General partners, however, are personally liable for the actions of the business and the other general partners, even if those actions appear unreasonable, excessive or if they result in legal judgments against the business. General partners can lose far more than their initial investments. These management and risk burdens are two reasons general partners usually receive management fees as well as a larger percentage of the partnership's profits above a certain level. The limited partners are more like silent investors.

Source: Investing Answers

limited partnership

Legal Definition of limited partnership

see partnership

More from Merriam-Webster on limited partnership Encyclopedia article about limited partnership

Comments on limited partnership

What made you want to look up limited partnership? Please tell us where you read or heard it (including the quote, if possible).


miscellaneous remnants or debris

Get Word of the Day daily email!

Test Your Vocabulary

The Exceptions Quiz III

  • one green toy robot amidst many red toy robots
  • Which of these words does not mean "nonsense"?
True or False

Test your knowledge - and maybe learn something along the way.

Word Winder's CrossWinder

Test Your Knowledge - and learn some interesting things along the way.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!