Which of the following best describes a limited liability partnership?

A limited liability partnership (LLP) is characterized by the critical feature that all partners have limited liability for the debts and obligations of the business. This means that the personal assets of the partners are protected in the event that the LLP incurs debts or is sued, to a certain extent. This structure encourages investment and participation from partners while minimizing financial risk.

The focus on limited liability is particularly important because it differentiates LLPs from traditional partnerships where partners generally assume unlimited liability. In a limited liability partnership, even if one partner engages in wrongful actions that incur debts for the business, the other partners' personal finances remain mostly shielded from any legal repercussions.

The other options do not capture this essential characteristic of an LLP. While some partnerships might share responsibilities equally, this is not a defining feature of a limited liability partnership. The notion that all partners have unlimited liability contradicts the essence of limited liability partnerships, and the management arrangement, where only some partners take on roles, does not inherently convey the concept of liability constraints that define LLPs. Thus, the accuracy of stating that all partners have limited liability for business debts is what underscores the structure and function of a limited liability partnership.