GP is the manager in the partnership, responsible for managing and supervising the operation of the enterprise. They are the specific executors of the limited partner enterprise and need to be responsible for the investment decision of the enterprise. At the same time, GP has to bear higher risks and responsibilities. Once business problems occur, GP will also face more legal risks.
GP usually has higher equity in partnerships because they take on more risks and responsibilities. When the enterprise is profitable, GP usually gets a higher proportion of dividends. However, once the business loses money, GP will also bear greater losses. Therefore, GP needs to fully understand and control business risks in order to ensure its own income and profits.