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Finance Glossary

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General Partner

Definition:

In a DPP or limited partnership, the general partner makes all the operating decisions. Not because he necessarily WANTS to (although it's likely he does), but because it's legally required that he do so. General partners will have some financial interest in the limited partnership, but a lot of their compensation is based on their management and investment responsibilities. General partners also have unlimited liability, in contrast to limited partners whose liability is limited to the amount invested.