general partner

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Related to General partners: limited partners

general partner

n. 1) usually one of the owners and operators of a partnership, which is a joint business entered into for profit, in which responsibility for management, profits, and, most importantly, the liability for debts is shared by the general partners. Anyone entering into a general partnership (the most common business organization involving more than one owner) must remember that each general partner is liable for all the debts of the partnership. Furthermore, any partner alone can bind the partnership on contracts. For example, Joe Doright and Sam Sleazeball are partners in a retail store. Sleazeball runs up a large American Express card bill in the name of the company while on a toot in Las Vegas, contracts for purchase of $30,000 worth of maxi-dresses which are out of fashion, and then takes off with a girlfriend for Tahiti. Doright is responsible for the entire debt. 2) in the 40 states which recognize limited partnerships, the managing partner (or partners) operate the partnership and are liable for its debts beyond the value of the investments by limited partners. The general partners usually receive a management fee and share in profits. Limited partners are prohibited by law from participating in management, can lose more than their investments, and get less than the general partners of unusually high profits. (See: partnership, partner, limited partnership)

general partner

any partner in a partnership other than a limited partner.
References in periodicals archive ?
E&Y says that 13 individual fund general partners raised about 70% of the $72.
The limited partners sued the general partners for failing to fulfill their agreement.
U-Haul Executive Vice President Harry DeShong urged the Shurgard General Partners to act in the best interest of all the limited partners and commence negotiations with U-Haul.
In a LLC, the participants are called "Members," and rather than a General Partner, there is a "Managing Member.
According to U-Haul International Executive Vice President, Harry DeShong, "U-Haul has sent a letter to a general partner of the partnerships expressing a desire to work together to achieve a transaction that would provide greater value to the limited partners than the proposed roll-up transaction.
They should participate in the same profit-sharing system as general partners and have profit-sharing units in the same ratio as full-time general partners.
The IRS has publicly ruled it possible, under certain circumstances, for a partner to exchange a general partner interest for a limited partner interest (or vice versa) without incurring tax liability from the transaction.
If this definition applies for material participation, all LLC members are general partners subject to section 469's broader material participation requirements.
The Purchasers are not affiliated with Freedom or its general partners (the "General Partners").
Independent of the preferential distribution and subject to the business's reasonable needs, as general partners the parents can decide whether they want to make distributions on the general partner and nonpreferential limited partnership interests (keeping in mind that a general partner has a fiduciary duty to act in the best interests of all partners).
Working exclusively with IDG Ventures as a Senior Advisor, Westphal will work with the IDG Ventures general partners to further the firm's life sciences investment initiatives.
A partnership may designate a TMP after filing the partnership return for a tax year by submitting a statement signed by general partners who held more than 50% of the aggregate interest in partnership profits held by all general partners at the close of the tax year.

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