A partnership is a business with several individuals, each of whom owns part of the business. The relationship between the partners and the duties of partners are clarified in the partnership agreement.
In any partnership, each partner must “buy in” or invest in the partnership. Usually, each partner’s share of the partnerships profits and losses is based on his or her percentage share of ownership.
In many cases, the limited partners are merely investors who do not wish to participate in the partnership other than to provide an investment and to receive a share of the profits.