Over 700 finance terms, Shmooped to perfection.
A Limited Partnership is a financial gathering of investors who come together for a purpose. A common and popular form of limited partnership is a venture capital investment company. The guys who invest the money are called the General Partners and the suckers - er, people who give them the money are called Limited Partners. Limited partnerships have a lot of potential tax goodies but only if the limited partners are truly passive - they can't participate in the management of the partnership. Being a limited partner can require a lot of faith and a very strong stomach.