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The business model of LP is Limited Partnership, which implies the existence of at least one general partner and one limited partner. The general partner does the operations and is liable to the full whereas limited partners provide investments but are not liable in any way, except the money they invest. LPs are prevalent in the sectors where the passive investors will want to participate in the profit-sharing without taking up management responsibilities. This is a structure that is good in terms of balancing control and risk, which is suitable in terms of investment projects. Nevertheless, the LPs should observe the local business registration standards and should be transparent by submitting annual reports and financial reports.
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