What type of partnership involves both general and limited partners?

The correct choice describes a structure where there are two distinct types of partners: general partners and limited partners. In this type of partnership, general partners manage the business and are fully liable for debts, while limited partners contribute capital but have limited liability and do not participate in management. This blend allows for a combination of active management and passive investment, making it an attractive option for certain business ventures.

In contrast, other partnership types mentioned in the choices do not encompass both roles simultaneously. Joint partnerships, for instance, typically refer to agreements between individuals who come together to manage a single business, without the specific designation of limited partners. Limited partnerships, while they do include limited partners, do not clarify the presence of general partners as defined in the provided answer. Associative partnerships are not a standard term recognized in partnership law, and therefore do not apply here. The answer captures the essence of this hybrid partnership structure accurately, highlighting the roles and responsibilities of each partner type.