Can a partnership's limited partners be corporations?

Limited partners in a partnership can indeed be individuals or entities, such as corporations. This flexibility allows for a diverse range of investors to participate in limited partnerships, where limited partners typically provide capital and share in profits without being involved in day-to-day management. Corporations can act as limited partners, contributing resources while limiting their liability, just like individual limited partners.

This structure is beneficial for both types of partners — corporations can invest in partnerships to further their business objectives without the obligation to manage the partnership, while general partners can leverage the additional capital that corporate limited partners can provide. This option ensures that partnerships can attract a broader base of investors, thereby enhancing their ability to raise funds and grow.

The other choices lack this critical understanding of partnership structures, as they incorrectly limit the types of entities that can serve as limited partners or impose unnecessary restrictions.