Final answer:
The incorrect statement regarding limited liability partnerships is that no general partners are needed. A limited liability partnership does include general partners who are responsible for management and partnership actions.
Step-by-step explanation:
The statement that is NOT true concerning a limited liability partnership is that 'No general partners are required for limited liability partnerships'. A limited liability partnership typically includes general partners who manage the business and are responsible for the actions of the partnership. Limited partners do not participate actively in the management and are only liable for the amount they have invested in the company. Limited partners may contribute tangible or intangible assets towards the capitalization of the business.
It is important to distinguish between different business structures like sole proprietorships, general partnerships, limited partnerships, and corporations. Each has its advantages, disadvantages, tax implications, and levels of liability for its owners or partners. Generally, a limited partnership allows partners to limit their liability and protect their assets from the partnership's debts or legal troubles, while a general partnership involves personal liability for all the partners.