The correct answer is option ( E ).
A limited partnership (LP) is a collaboration having two or more participants that is distinct from a limited liability partnership (LLP). Limited partners are not involved in business management; instead, the general partner manages and controls the company. A limited partnership limited partners, on the other hand, are only liable for the amount of their investment, with the general partner of the limited partnership having unlimited liability for the debt.
Having both general partners and limited partners is a requirement for a limited partnership, which is something to keep in mind. General partners have unrestricted liability and complete management authority over the company. Limited partners managerial engagement is minimal to nonexistent, but their liability is constrained to the amount of money they invested in the LP.
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