Which type of partnership structure limits liability for some partners?

A limited partnership is a specific type of partnership structure that allows for both general and limited partners. In this arrangement, the general partner manages the business and is personally liable for the debts and obligations of the partnership. In contrast, the limited partners have limited liability, meaning their responsibility for the partnership's debts is confined to the amount they have invested. This structure is particularly advantageous for investors who wish to contribute capital to a business without being exposed to the broader personal liability that a general partner faces.

This distinction is crucial in understanding the risks and protections afforded to different parties within a partnership. In a general partnership, all partners share equal responsibility and liability for the partnership's debts, making it a higher-risk structure compared to a limited partnership. A sole proprietorship has no distinction between the business and the owner in terms of liability, resulting in personal liability for all business debts. Corporations, while limiting liability for shareholders, are not partnerships and operate under different legal principles. Thus, the limited partnership offers a unique blend of investment opportunity and liability protection for some partners, making it the correct answer.