What type of business entity is characterized by both general and limited partners?

A limited partnership is a specific type of business entity that includes both general partners and limited partners. In a limited partnership, general partners manage the business and are personally liable for the debts of the partnership, while limited partners typically contribute capital and share in the profits but do not participate in managing the business, and their liability is limited to the amount of their investment. This structure allows for a combination of involved management and passive investment, making it a flexible option for various business ventures.

In contrast, a limited corporation is a term that doesn't directly apply to the roles of partners in a partnership model. A general partnership consists solely of general partners who share in the management of the business and bear unlimited personal liability. A sole proprietorship involves a single individual operating a business and doesn't include multiple partners, limiting its relevance to this question. Therefore, the characteristics of a limited partnership align perfectly with the structure outlined in the question, confirming it as the appropriate answer.