What is the primary characteristic of limited partners in a partnership?

The primary characteristic of limited partners in a partnership is that they contribute only capital. Limited partners typically invest money into the partnership but do not engage in the management or operational activities of the business. This structure allows them to benefit from the profits generated by the partnership without taking on the same level of risk as general partners.

Limited partners enjoy limited liability, meaning their financial responsibility for the partnership's debts is restricted to the amount they invested. This differs from general partners, who manage the daily operations and are personally liable for all business debts. Therefore, the role of a limited partner is primarily as an investor rather than an active manager, making their capital contribution the key aspect of their involvement in the partnership.