What characteristic describes limited partnerships?

Limited partnerships are characterized by their inclusion of attributes typical of partnerships, specifically the presence of both general partners and limited partners. General partners manage the day-to-day operations of the partnership and have unlimited liability for the debts of the business. In contrast, limited partners contribute capital and share in the profits but have limited liability, extending only to the amount of their investment in the partnership.

This structure allows for a combination of active management by the general partners and passive investment from limited partners, which is a defining feature of limited partnerships. Such a model encourages investment while providing some protection for those who wish to invest without being involved in the management.

The other characteristics mentioned in the choices do not accurately describe limited partnerships. They do not have to be owned by a single individual, nor do they require a corporate structure. Additionally, while limited partnerships must comply with state regulations, the term "incorporated under state law" typically applies to corporations rather than partnerships. Hence, focusing on the attributes of a partnership is key to understanding the essence of limited partnerships.