Final answer:
The correct answer is that a limited partnership must have at least one general partner. Limited partners only risk their investment and not personal assets, and the entity can choose to be taxed as a corporation if desired.
Step-by-step explanation:
A limited partnership has specific characteristics and requirements as a business entity. Contrary to the options provided, a limited partnership does not inherently have limited tax liability. However, it can opt to be taxed as a corporation if the partners so choose. This type of business structure is not the newest, as that distinction belongs to the Limited Liability Company (LLC). Importantly, a limited partnership must have at least one general partner who assumes unlimited liability, while the remaining partners can be limited partners who have liability restricted to the extent of their investment in the business. Finally, a limited partnership does not consist solely of limited partners; the presence of at least one general partner is compulsory.