Assume the football team is set up as a limited partnership Lenny is the only general partner and Sarah and Sam are the only limited partners. Which of the following is incorrect?

Distribution of the profit among the partners is set by statute even if set forth in an agreement among the parties.

If Sarah and Sam were to act in the management of the team, they would lose their limited liability.

The profits from the team would pass through to the partners.

The company must be formed through compliance with state statutes.