Limited partners are affected by company’s liabilities only to the amount of capital they contributed into the company. Their personal property is safe even if the company falls into debt

Venture capital and private equity funds are classified into limited partnerships because the owners of these funds act as passive partners that just wait to profit from the company they place these funds. Limited partnerships have one member who controls every operation of the company and other(s) who do not care about the operations of the company, but are involved in the sharing of profits.

Labor is by far the most vital factor in the development of any business. The fact that the technology cannot work without human support and humans can work without technology underscores this fact. Therefore, the people are the perfect measure of an investment deal. Moreover, the people are the ones who develop the technology. Hence, a skillful entrepreneur capable of producing technology that is more advanced in the future is more important than the existing technology that is bound to go obsolete as the years wear on.