Which of the following statements is false ?

In a limited partnership, only one partner is required to be a general partner.

In a limited liability partnership, all partners are limited partners.

A sole proprietorship is a type of limited partnership.

There are three types of partnerships.

1 answer

The false statement among the given options is:

A sole proprietorship is a type of limited partnership.

A sole proprietorship is a business structure where a single individual owns and operates the business, while a limited partnership involves at least one general partner and one or more limited partners. These are distinct business structures, hence the statement is false.

The other statements are true:

  • In a limited partnership, there is indeed at least one general partner responsible for managing the business.
  • In a limited liability partnership (LLP), all partners have limited liabilities.
  • There are typically considered to be three main types of partnerships: general partnerships, limited partnerships, and limited liability partnerships.