Which type of partnership includes both general and limited partners?

A limited partnership is characterized by the inclusion of both general and limited partners. In such a structure, general partners manage the day-to-day operations and have full liability for the debts and obligations of the partnership. In contrast, limited partners contribute capital and share in the profits but do not participate in management, and their liability is limited to their investment in the partnership.

This distinction is crucial in understanding the operational dynamics of a limited partnership. The general partners take on more risk, while limited partners can invest with reduced exposure to liability. This structure allows for greater flexibility in terms of attracting investors who may not want to be involved in the active management of the partnership, which is a common scenario in business ventures that require significant capital investment.

Other types of partnerships, such as general partnerships, only consist of general partners who share equal responsibility for managing the business and are fully liable for its debts. A joint venture typically involves a temporary partnership for a specific project or business endeavor rather than an ongoing business relationship. A sole proprietorship, on the other hand, is a business owned and operated by one individual, providing no partnership structure whatsoever.