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General Partner

General Partner (often abbreviated to GP) refers to a person or a company that is in partnership with one or more other partners. All general partners in a partnership share equally in the responsibility and liability for the actions of the partnership. General partners have unlimited liability which means that, if the partnership’s liabilities exceed its assets, the general partners are legally obliged to make up the shortfall.

In a partnership that includes both general partners and limited partners, the general partners usually have the right to act on behalf of the entire business without asking permission from the limited partners, although the full scope of their actions may be constrained by a partnership agreement. For a partnership that is making investments, the GP’s role is often analogous to the role of an investment manager.

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