Which characteristic of a limited partnership is true?

A limited partnership is a specific type of partnership that consists of one or more general partners and one or more limited partners. The defining characteristic of a limited partnership is that it must be formed in accordance with statutory requirements, which typically involve filing a certificate of limited partnership with the appropriate state authority. This formal registration differentiates limited partnerships from general partnerships, which may not require such filings.

In this structure, general partners manage the business and are personally liable for the debts and obligations of the partnership, while limited partners typically do not participate in management and their liability is limited to their contributions to the partnership. This clear demarcation of roles and responsibilities is critical to the functioning of a limited partnership and emphasizes the importance of adhering to the relevant legal requirements for formation.

Other options describe characteristics of partnerships inaccurately or contradict the fundamental nature of a limited partnership. For instance, limited partners typically do not control the business due to their limited involvement in management. General partners are responsible for running the business, not limited partners. Thus, this understanding highlights why compliance with statutory requirements is a key defining aspect of limited partnerships.