Definition by the book
A general partner is a member or partner in a general or limited partnership with unlimited personal liability for the profits and losses of the business. A general partner actively manages and exercises control over the company.
A general partner is one of two or more investors who jointly own a business and assume a day-to-day role in managing it, including shares in all assets, profits, and financial and legal liabilities of a jointly-owned business. In a general partnership, partners agree to unlimited liability, meaning liabilities are not capped and can be paid through the seizure of an owner's assets (confiscation of belongings).
What it really means
A general partner is the person/people who are personally responsible for the company. This person acts as managing director and representative of the company internally and externally, and therefore takes over the running of the company. The general partner shares the expenses and responsibilities of operating the business and shares in the profits if it's successful and loss if it's not successful. As a simple analogy, you can think about a general partner as the parent in the room responsible for his/her kid, while the limited partner can be an assisting caretaker or teacher.
Learn more
- https://www.myaccountingcourse.com/accounting-dictionary/general-partner
- https://www.investopedia.com/terms/g/generalpartner.asp
- https://www.ionos.com/startupguide/get-started/general-partner/