Limited Partnership Agreement is the Foundation of all Limited partnerships. The agreement is the contract between all partners and it spells out the authority of the general partner and the rights of all limited partners.
Applying "Limited Partnership Agreement" to Securities Exams:
A limited partnership is a full flow through type of partnership as defined by the IRS. In other words, both gains and losses flow through the program to the limited partners. Limited partnerships have 2 types of partners; limited partners and general partners. It is the function of the general partner to "run" the partnership. They are the decision makers. On the other hand, the limited partners have no decision making power. Their function is to provide the money, they are silent partners. The Limited Partnership Agreement spells out how each partner is to act with respect to the particular limited partnership.