2. What is the difference between a general partnership and a limited partnership?
In a general partnership, all partners can manage the business and all partners are personally liable for the debts and obligations of the partnership. On the other hand, limited partnerships have general partners who manage the business and passive partners, called limited partners, who are simply investors, having no control over the operation of the business. The general partners alone are personally liable for the limited partnership’s obligations. The limited partners have the same limited liability protection enjoyed by corporation shareholders and Limited Liability Company (LLC) members.