Which of the following describes a limited partnership?

A limited partnership is characterized by having both general and limited partners. In this structure, general partners manage the day-to-day operations of the business and have unlimited liability for the debts and obligations of the partnership. On the other hand, limited partners are typically investors who contribute capital but do not participate in managing the business. Their liability is limited to the extent of their investment in the partnership. This distinction benefits those who wish to invest without the risk of losing more than their initial contribution.

Understanding this structure is crucial for recognizing how different partners share responsibility and risk in a business venture. The limited partnership model allows for a flexible investment avenue, where limited partners can invest in a business while maintaining some degree of protection for their personal assets.

In contrast to a limited partnership, a partnership with unlimited liability for all partners would not fit the definition, as it would imply that all partners are exposed to the full extent of the business's liabilities. Similarly, stating that all partners are active investors would not capture the essence of a limited partnership, where limited partners do not actively manage the business. Lastly, suggesting a partnership that cannot own property does not align with the characteristics of a limited partnership since such partnerships can own property like any business entity.