What characterizes a limited partnership?

A limited partnership is defined by its structure, which includes one or more general partners and one or more limited partners. General partners manage the business and have unlimited liability for the debts of the partnership, while limited partners contribute capital and enjoy limited liability to the extent of their investment. This structure allows for a differentiation in roles and responsibilities, facilitating investment while protecting the limited partners from personal liability beyond their contributions.

The other options do not accurately reflect the nature of a limited partnership. While general partners indeed have unlimited liability, limited partners do not share this risk, which is a key distinguishing feature. Limited partnerships also tend to be more regulated than general partnerships as they often require formal filings and compliance with state laws, specifically for the protection of limited partners. Lastly, while having a written agreement is often recommended for clarity and legal purposes, a limited partnership can also be formed through other means, depending on jurisdictional laws. Hence, the correct characterization centers on the coexistence of general and limited partners within the structure of the partnership.