What defines a general partner in a partnership?

A general partner in a partnership is defined by their role of having unlimited liability for the debts and obligations of the business, as well as their responsibility for managing the partnership. Unlike limited partners, who are often only investors and whose liabilities are limited to their investments, general partners actively participate in the management and decision-making processes of the partnership. This means they are fully liable for any debt incurred by the partnership, putting their personal assets at risk in the event of business insolvency or legal actions against the partnership.

This understanding underscores the dynamics within partnerships—general partners not only share in profits but also bear the brunt of financial risk and operational responsibilities. The distinction between a general partner and the other types illustrates the level of commitment and involvement required from general partners, which is critical to the functioning and legal structure of the partnership.