A limited partnership is a form of business that ensures an investor has limited personal liability and further enhances the ability to raise capital for the growth of the business. Unlike a sole proprietorship in which the entrepreneur assumes the entire liability, a limited partnership requires the partner to assume only part of the liability. This form of business offers personal asset protection, essentially meaning that a partner cannot have his or her assets used to pay off business liabilities and debts, further contrasting a general partnership where partners are not considered separate entities from the business, and their personal assets can be used to pay off debts and liabilities. Even if public companies ensure that the shareholder is limited to the liability for the contribution they have in the company in terms of shares, the mobilization of funds represents a challenge, since the company must have fulfilled certain legal and financial requirements before being listed in a stock exchange where it is possible to raise funds and other works...
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