Which statement is NOT characteristic of a General and Limited Partnership?

The statement identifies a key characteristic of limited partnerships. In a limited partnership, the limited partners are indeed not involved in the management of the business and do not participate in its day-to-day operations. This absence of participation also serves to protect their limited liability status, meaning that they are only liable for the partnership's debts up to the amount they invested.

Option C accurately represents this feature of a limited partnership, distinguishing it from a general partnership where all partners typically have equal management rights and obligations. As a result, this choice underscores an essential structural difference between general and limited partnerships, reflecting the unique risk profiles and responsibilities of the partners involved.

In contrast, the other options present true statements about general and limited partnerships. For instance, limited partnerships consist of both general and limited partners, while general partnerships include only general partners. Moreover, the liability distinctions between the partner types highlight important risk management considerations in these business structures. The general partners face joint and several liabilities, exposing them to greater financial risk, while limited partners enjoy a level of protection, reinforcing the partnership's framework.