What is a defining characteristic of a general partnership?

In a general partnership, one of the defining characteristics is that all partners actively participate in the management of the business. This aspect highlights the collaborative nature of general partnerships, where each partner has the authority to make decisions and take on responsibilities regarding the partnership's operations. This involvement fosters a shared commitment to the business and implies mutual agency, meaning that each partner can bind the partnership in agreements or contracts.

The other options do not accurately reflect traits of a general partnership. Limited partners with restricted liability pertain to limited partnerships, where certain partners have limited roles and liabilities. Contributions among partners do not need to be equal; they can vary based on individual agreements. Lastly, a general partnership allows for all partners to manage the business collectively rather than restricting management to a single partner, enabling collaborative decision-making and operations.