limited partnership

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Related to limited partnership: Master limited partnership

Limited partnership

A partnership that includes one or more partners who have limited liability.

Limited Partnership

A business model in which at least one general partner and at least one limited partner share a business' ownership. In a limited partnership, the general partner does not usually make invest any capital, but has management authority and unlimited liability. That is, the general partner runs the business and, in the event of bankruptcy, is responsible for all debts not paid or discharged. The limited partners have no management authority and confine their participation to their capital investment. That is, limited partners invest a certain amount of money and have nothing else to do with the business. However, their liability is limited to the amount of the investment. In the worst case scenario for a limited partner, he/she loses what he/she invested. Profits are divided between general and limited partners according to an arrangement formed at the creation of the partnership.

limited partnership

A partnership in which some of the partners have a limited liability to the firm's creditors. Compare general partnership. See also master limited partnership.
What type of investor should participate in a limited partnership?

The target market for investors who could participate in most limited partnerships is composed of high net worth clients who have tax problems and significant income. An investor who participates in such a partnership should understand that most limited partnerships are illiquid investments having no public market. In addition, the investor must ask himself or herself whether use can be made of the anticipated benefits and whether the high economic risk can be sustained.

George Riles, First Vice President and Resident Manager, Merrill Lynch, Albany, GA

Limited partnership.

A limited partnership is a financial affiliation that includes at least one general partner and a number of limited partners. The partnership invests in a venture, such as real estate development or oil exploration, for financial gain.

The arrangement can be public, which means you can buy into the partnership through a brokerage firm, or private.

What makes it a limited partnership is that everyone but the general partners has limited liability. The most the limited partners can lose is the amount they invest.

limited partnership

A partnership agreement in which one person acts as the general partner, with unlimited liability for all partnership debts,and all other investors have a status similar to stockholders. Such people, called limited partners, may lose their investment if there is a loss to the project,but no creditor may reach their personal assets.The vehicle was much more popular before tax law changes took away most of the tax advantages of real property syndications.

References in periodicals archive ?
A discussion of certain risks that may be material to the decision by holders of units of the limited partnerships whether to tender such units to the Purchaser pursuant to the tender offer is set forth in the Amended and Restated Offer to Purchase dated August 31, 1999, which discussion was not included in the original Offer to Purchase dated August 5, 1999 with respect to the tender offer.
The advantages of a limited partnership include the following:
However, in the meantime, the added expense of maintaining a limited partnership generally will be minimal compared to the income tax benefit currently available.
In connection with proposed merger transactions involving Equity Office and EOP Operating Limited Partnership and affiliates of The Blackstone Group, Equity Office filed a definitive proxy statement and two proxy statement supplements with the SEC, has furnished the definitive proxy statement and the initial proxy statement supplement to Equity Office's shareholders and is furnishing the second proxy statement supplement to Equity Office's shareholders.
A limited partnership investment in a qualified affordable housing project should be reviewed periodically for impairment.
19 /PRNewswire/ -- Banyan Strategic Land Fund II (Nasdaq-NNM: VSLF) announced today that a favorable ruling was obtained in its motion for sanctions brought against certain individuals, their attorneys and two limited partnerships with whom the individuals were associated.
New York City time, on February 8, 2007 (unless extended or earlier terminated by EOP Operating Limited Partnership, the "Offer Expiration Date"), but such holders will only be eligible to receive the applicable tender offer consideration, which is an amount, paid in cash, equal to the applicable total consideration less the applicable consent payment, for their Notes.
Letter Rulings 9119029 and 9210019 have also allowed the conversion of a limited partnership into a LLC.
We believe we will be able to enhance limited partnership equity values through aggressive asset and property management practices.
In its simplest form, a taxpayer establishes an FLP, transfers property to the partnership and then gives limited partnership interests to children or grandchildren (or to trusts for their benefit).
Following discussions with "The Ad Hoc Committee of Unsecured Noteholders of Equity Office Properties Trust," EOP Operating Limited Partnership has amended further the terms of the tender offers to provide that the "total consideration," as defined in EOP Operating Limited Partnership's Offer to Purchase and Consent Solicitation Statement dated December 26, 2006 (the "Offer to Purchase"), for each of the 7.
A recent Tax Court decision has affirmed the use of valuation discounts in the determination of fair market value for gifted family limited partnership (FLP) interests.

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