Final answer:
There is no set legal minimum percentage of profit or loss participation required for a general partner in a limited partnership; terms are determined by the partnership agreement. General partners have full personal liability for partnership debts, unlike limited partners.
Step-by-step explanation:
The question relates to the structure and requirements of a general partnership within a limited partnership.
In a general partnership, there is no minimum required percentage of profit or loss participation specified for a general partner to maintain their status. Instead, the terms of participation are typically agreed upon by all partners in the partnership agreement.
The general partner may have any percentage of participation as long as it is agreed to by all partners.
However, the general partner does have full personal liability for the debts and obligations of the partnership, which is one of the major disadvantages when compared to other business structures where owners have limited liability.
In contrast to a limited partner who typically has limited liability and a restricted role in management, a general partner is responsible for the day-to-day management of the partnership and has unlimited personal liability.
There is no legal minimum percentage for profit and loss participation needed to qualify as a general partner; this is a matter of internal agreement among the partners.