Limited partnerships are partnerships where there is one or more limited partners, along with at least one general partner. The general partners basically run the business of the partnership and have the same level of management in the affairs of the partnership. In addition, the general partners act as agents for the partnership and can bind the partnership for his or her actions. Limited partners in the partnership have limited liability. Therefore, the limited partners are liable to the level of their investment in the partnership. The limited partners also do not have management authority and are not involved in day to day operations of the partnership business. Usually, the limited partnership is conducted pursuant to a partnership agreement. This agreement frequently contains the manner in which profits are distributed to the limited partners.