Definition: A partnership is type of unincorporated business structure in which individuals or entities called "partners" are entitled to a percentage of the profits.
In any partnership there are generally two types of "partners" - general and limited. The General Partners have control of the day to day operations of the business and are legally liable for the debts of the company. If the partnership goes bankrupt, courts can take the personal assets of the general partners and use them to pay back the debts.
Limited partners, on the other hand, are those who simply invested capital into the business. They are not involved in the daily operations, and their liability is limited only to the amount they have invested.
