Limited Partnership is an association of two or more partners with at least one partner being the general partner who is responsible for the management of the partnership
Applying "Limited Partnership" to Securities Exams:
A limited partnership is a full flow through investment as defined by the IRS. Simply stated, the gains as well as the losses flow through the program to the investors (limited partners), creating passive gains and passive losses. In order to differentiate themselves from corporations, which have different tax rules, limited partnerships are created with a life span (typically 30 years) and are highly illiquid. There are many types of limited partnerships including real estate LPs, equipment leasing LPs and oil and gas LPs.