A partnership in which one partner's liability is limited to their capital contribution is called?

A partnership where one partner's liability is limited to their capital contribution is known as a limited partnership. In this structure, there are typically two types of partners: general partners, who have full management control and personal liability for the partnership's debts, and limited partners, whose liability is limited to the amount they have invested in the partnership. This arrangement allows limited partners to invest in the business without taking on the same level of risk as general partners.

In contrast, a general partnership involves all partners sharing equal responsibility for the management and debts of the business, meaning all partners have unlimited liability. A joint venture is a temporary partnership for a specific project or business activity, while a silent partnership, which is often a synonym for limited partnership, primarily refers to a partner who invests in a business but does not participate in its day-to-day operations. However, the term limited partnership is specifically defined in legal terms regarding liability and capital contribution, making it the most accurate response in this case.