Business Definition for: research and development limited partnership
research and development limited partnership
plan whose investors put up money to finance new product
Research and Development
. In return, the investors get a percentage of the product's profits, if any, together with such benefits as
depreciation
of equipment. R&D partnerships may be offered publicly or privately, usually through brokerage firms. Those that are offered to the public must be registered with the Securities and Exchange Commission.
See also
limited partnership
Related Terms:
organization made up of a general partner, who manages a project, and limited partners, who invest money but have limited liability, are not involved in day-to-day management, and usually cannot lose more than their capital contribution. Usually limited partners receive income, capital gains, and tax benefits; the general partner collects fees and a percentage of capital gains and income. Typical limited partnerships are in real estate, oil and gas, and equipment leasing, but they also finance movies, research and development, and other projects. Typically, public limited partnerships are sold through brokerage firms, for minimum investments of $5,000, whereas private limited partnerships are put together with fewer than 35 limited partners who invest more than $20,000 each.
Referring Terms:
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