Which type of partners in an LP have limited liability?

Limited partners in a Limited Partnership (LP) enjoy limited liability, which is a fundamental characteristic of this type of partnership structure. In an LP, there are two types of partners: general partners and limited partners. General partners manage the business and are personally liable for the debts and obligations of the partnership, which means their personal assets are at risk. On the other hand, limited partners contribute capital to the partnership but do not take part in day-to-day management. Their liability is confined to the amount of their investment in the partnership, protecting their personal assets beyond that investment.

Therefore, only the limited partners benefit from the limited liability that distinguishes them within this business structure. This feature makes limited partnerships appealing for investors who wish to limit their risk exposure while still participating financially in a business venture. In contrast, general partners cannot claim this protection, which is why limited partners are the correct answer in this context.