Week 11 - Limited Partnerships Flashcards
1
Q
What is a limited partnership and what is it based on?
A
Limited Partnerships Act 1907 - composed of a number of limited (sleeping) partners
2
Q
What do limited partners do?
A
Limited partners play no active role in running the business and their liability is limited to amount invested
3
Q
What must there be in a limited partnership?
A
Must be at least one general (active) partner who still has unlimited liability
4
Q
What types of firm are we most likely to see limited partnerships?
A
Private equity firms (very rich people in charge)
