General Partner

Business, Legal & Accounting Glossary

Definition: General Partner


Quick Summary of General Partner


A person who joins with at least one other to own and operate a business for profit — and who (unlike a corporation’s owners), is personally liable for all the business’s debts and obligations. A general partner’s actions can legally bind the entire business. See also partnership, limited partnership.




What is the dictionary definition of General Partner?

Dictionary Definition


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. 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 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 from unusually high profits.

Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/general-partner/
Modern Language Association (MLA):
General Partner. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 23, 2021 https://payrollheaven.com/define/general-partner/.
Chicago Manual of Style (CMS):
General Partner. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/general-partner/ (accessed: September 23, 2021).
American Psychological Association (APA):
General Partner. PayrollHeaven.com. Retrieved September 23, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/general-partner/

Definition Sources


Definitions for General Partner are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 28th April, 2020 | 0 Views.