Which statement about general partnerships is true?

• A. All partners are not required to actively work, have equal interests, or make a financial investment
• B. A general partnership cannot own real estate
• C. Partners must be licensed in real estate
• D. All partners must actively work, have equal interests, and invest capital

Answer: (A)

In a general partnership, there is flexibility in how partners participate and contribute. It’s true that not every partner must actively work, hold equal ownership, or invest the same amount of capital. You can have passive partners, unequal ownership interests, and varying capital contributions, all arranged by the partnership agreement.

Context helps: general partnerships involve shared management rights and shared profits or losses unless an agreement says otherwise. Each partner can be personally liable for partnership debts, and the partnership itself can own real estate. Licensing matters depend on whether a person is actively performing real estate activities; a partner who isn’t engaged in those activities doesn’t have to be licensed, though anyone conducting real estate work must be licensed.

So, the statement that best fits is that none of those elements (active work, equal interests, or equal capital investment) are required. The other statements are not correct because a general partnership can own real estate, partners don’t all have to be licensed unless they’re performing licensed activities, and they don’t have to all actively work or invest equally.