What distinguishes a general partnership from a limited partnership?

In a general partnership, all partners share equal responsibility and authority in managing the business. This means that only general partners are involved in the day-to-day operations and decision-making processes. They have unlimited liability, which means they are fully responsible for all debts and obligations related to the partnership.

In contrast, a limited partnership includes at least one general partner who manages the business and has unlimited liability, while the limited partners' involvement is significantly restricted. Limited partners typically cannot participate in the management of the business and have their liability limited to the extent of their investment. This distinction is crucial as it defines the level of risk and control each type of partner has within the partnership.

This is why the statement that only general partners manage the business accurately describes the foundational difference between general and limited partnerships.