Final answer:
Only limited partners cannot manage the business in a limited partnership; this is a role reserved for general partners who have unlimited liability. Limited partners can sell their interest and are only liable for their investment amount. The names of general partners are allowed in the business title. The correct option is B.
Step-by-step explanation:
Among the statements provided about limited partnerships, the one that is NOT true is: B) Only limited partners can manage the business. In a limited partnership, the management of the company is typically reserved for the general partners, who have unlimited liability.
The limited partners usually have no say in the daily management of the business and are primarily investment partners. They do enjoy limited liability, meaning they are only liable for their own investment in the partnership, not the business's debts. However, this is offset by the lack of control they have in managerial decisions.
On the contrary, limited partners do have the ability to sell their interest in the company, as mentioned in option A. Option C is a defining characteristic of a limited partnership as there must be at least one general partner with unlimited liability.
Option D is accurate as well, since typically only the names of the general partners can be used in the name of the firm to protect the limited partners from personal liability. The correct option is B.