master (adjective, mas-ter, \ ˈmæstər \) limited (adjective, lim-it-ed, \ ˈlɪmɪt̬ɪd \) partnership (noun, part-ner-ship, \ ˈpɑːrt.nərʃɪp \)
Definition: is a type of the limited business relationship that exists in a form of a publicly traded business partnership. A master limited partnership is the most prevalent business relationship in such areas as financial services, natural resources, and real estate. Such a partnership type involves a number of benefits, including the fact that each shareholder’s profits fall under a tax only when the investors receive the distributions. Moreover, master limited partnerships are usually linked to the slow-growth and stable industries, which allows for a more secure financial position and a steady income. A master limited partnership may include two sub-types of partners: limited and general partners.
In a Sentence:
- A master limited partnership is quite beneficial in terms of taxation.
- Being a sort of a hybrid business structure, a master limited partnership allows you to trade units on national stock exchanges.
- If you are looking for a good opportunity for a slow and stable investment, perhaps you should consider a master limited partnership.
Synonyms and related words: business relationship, publicly traded, limited partnership, limited partners, general partners, shareholder
