Limited partners (LP) are real investors, but they are not responsible for specific operations. The general partner (GP) has the right to manage and decide the partnership affairs, be responsible for leading the team operation, and assume unlimited liability for the partnership debts.

Second, the transaction is different:

The general partner shall not conduct transactions with the enterprise, unless otherwise agreed in the partnership agreement or otherwise agreed by all partners; Limited partners may conduct transactions with the Enterprise, unless otherwise agreed in the partnership agreement.

Third, corporate debt is different:

The general partner shall bear unlimited liability for the debts of the partnership. A limited partner shall bear limited liability to the partnership only with its capital contribution.

Fourth, different management responsibilities:

General partners are responsible for the operation of the partnership, and generally have business performance awards; The limited partner is not responsible for the operation, has no operating remuneration, and only obtains the corresponding operating profit according to the share of capital contribution.

Baidu Encyclopedia-Limited Partner

Baidu Encyclopedia-General Partner