A limited partnership permits investors who do not engage in management to share in the profits of the business without becoming personally liable for its debts.

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This statement is true. In a limited partnership, there are general partners who manage the business and are personally liable for its debts, and limited partners who do not participate in management and have limited liability. The limited partners share in the profits of the business without being personally liable for its debts.

A Limited Partnership Permits Investors Who Do Not Engage in Management