In business terminology, LP stands for Limited Partnership. To elaborate, LP is an abbreviation commonly used in the business world to refer to a Limited Partnership. This type of partnership involves at least one general partner who manages the business and assumes unlimited liability, and one or more limited partners who contribute capital and share in the profits but whose liability is limited to their investment. Limited Partnerships are often used in industries such as real estate, private equity, and venture capital, where investors seek to limit their risk exposure while still participating in the potential financial gains of the business.