What distinguishes a general partnership from a limited partnership?

A general partnership is characterized by the fact that all partners are personally liable for the debts and obligations of the business. This means that each partner is responsible for the entire amount of any debts incurred by the partnership, regardless of their individual investment in the business or the specifics of their operational involvement. This level of liability underscores the inherent risk in general partnerships, as it provides no legal separation between personal and business liabilities.

In contrast, a limited partnership features two types of partners: general partners, who manage the business and are fully liable, and limited partners, who typically contribute capital and have limited liability, meaning their risk is confined to their investment in the partnership. Therefore, identifying that all partners in a general partnership are personally liable clearly distinguishes it from a limited partnership setup.