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The correct distinction between a professional corporation and a limited liability partnership is found in the features and structure of the professional corporation. Professional corporations are specifically formed to provide liability protection to their shareholders, meaning that individual shareholders are shielded from personal liability for the debts and obligations of the corporation. This characteristic is crucial for professionals, such as lawyers or accountants, as it ensures that personal assets are generally protected from malpractice claims or other business liabilities, offering peace of mind as they conduct their professional services.

In contrast, limited liability partnerships (LLPs) do provide some liability protection, but unlike professional corporations, they typically do not shield individual partners from malpractice liability caused by their own negligence or the negligence of those they supervise. Furthermore, the structure and regulatory requirements differ, as LLPs usually require partners to be actively involved in the business and, in the case of law firms, can have complex management structures.

The other potential answers highlight scenarios that do not accurately represent the fundamental differences between these two forms of business structures. For example, the claim about limited liability partnerships requiring all partners to have law degrees is not universally true; many LLPs include professionals from various fields. Additionally, the assertion that professional corporations can have non-lawyer shareholders may lead to confusion, as most