What type of partnership allows for one or more partners to have limited liability?

A limited partnership is the correct answer because this business structure specifically allows for both general partners, who manage the business and have unlimited liability, and limited partners, who contribute capital and have their liability limited to the amount of their investment. This means that if the business incurs debts or legal issues, the personal assets of the limited partners are generally protected, while the general partners bear the brunt of any financial obligations.

In contrast, a sole proprietorship is owned and operated by a single individual, who is fully liable for all business debts. A general partnership involves multiple individuals managing the business together, and all partners share unlimited liability. A joint venture is a temporary partnership for a specific project, but it does not inherently provide limited liability to its members. Thus, limited partnership stands out as the only option that distinctly allows for limited liability for certain partners.