To whom do limited partners typically report regarding partnership performance?

Limited partners typically report to the general partners regarding partnership performance because the general partners bear the responsibility for managing the partnership's operations and making key decisions. Limited partners are generally investors who contribute capital but do not take part in the day-to-day management of the business; thus, they rely on the general partners to keep them informed about the partnership's activities, financial performance, and strategic direction.

In this structure, the general partners act as the primary decision-makers and are accountable for the success of the partnership. They provide regular updates, financial statements, and performance reports to the limited partners, ensuring that the latter remain informed about their investment's status without taking on significant management responsibilities. This relationship is a foundational aspect of limited partnerships, emphasizing the separation of management and ownership roles within the structure.