In Alzado v. Blinder, Robinson & Company, Inc. , Blinder, Robinson & Co. was found liable to partnership creditors as a general partner because it assumed control of the business and thus lost its limited partnership status.

General Partner

A principal in a partnership who has unlimited personal liability and takes part in the management of the business.

Limited Partnership Status

A legal status for a partnership where some owners contribute capital and enjoy profits but do not participate in the management, thus limiting their liability.