Which of the following is a major distinguishing feature of a limited partnership?

A major distinguishing feature of a limited partnership is that limited partners do not participate in the management of the business. In a limited partnership, there are typically two types of partners: general partners who manage the day-to-day operations and assume full liability for the debts and obligations of the partnership, and limited partners, who contribute capital but whose liability is limited to the amount they invested. This structure allows limited partners to enjoy the benefits of the partnership without being exposed to the full risks associated with running the business. Their lack of involvement in management helps to legally shield them from liabilities beyond their investment.

In contrast, the other options do not accurately represent the characteristics of a limited partnership. While general partners must actively manage the partnership, it is incorrect to say that all partners are general partners, as limited partnerships specifically include both general and limited partners. Additionally, limited partnerships can hold real estate as long as it is part of the business purpose of the partnership, and they do not need to be formed by a corporation; individuals can form a limited partnership as well.