The partner has no involvement in the management of the business, nor can he exercise any suggestion or opposition to any policy like taking debt or investment.
IN LAYMAN TERMS- Suppose JAI contributes a part of the sum along with VEERU to buy a motorcycle, but Jai can only sit at the backseat. VEERU has the liberty at all the time to take Basanti (his girlfriend) for a ride, or put the bike on any service station or fill the fuel etc. JAI can only wait and play his mouthorgan. Here Jai is a limited partner.