General Partnership

  

See: General Partner (for the Silicon Valley venture capital flavor). But the more general general partnership definition runs like this:

Investment money is raised from limited partners. In theory, the general partnship is legally liable for any and all things that go wrong. In practice, before raising a dime, there are oceans of paperwork waiving any real liability to the general partners' flow, and nobody sues nobody for nothin'.

Find other enlightening terms in Shmoop Finance Genius Bar(f)