Final answer:
A general partner in a limited partnership must be actively involved in the management of the business but there is no minimum required percentage for sharing profits or losses. They have full personal liability for the business's debts, unlike limited partners whose liability is only up to their investment.
Step-by-step explanation:
In a limited partnership, a general partner does not have a minimum required percentage for participation in profits or losses to maintain their status; however, they must be actively involved in the management of the business. This contrasts with limited partners who typically do not participate in the day-to-day operations and whose liability is limited to their investment in the company. General partners share fully in the operational responsibilities and liabilities of the partnership, which includes personal liability for the business's debts, potentially risking personal assets in the event of the business's failure.
A key advantage of forming a limited liability partnership is that it provides the benefit of limiting the partner's liability to their investment in the company. This means the owners of the business would not risk losing their personal assets if the company were to fail. However, in a general partnership, every partner is exposed to the risk of personal liability for business debts and obligations.