What is a partner whose personal liability for partnership debts is limited to their contributions called?

A partner whose personal liability for partnership debts is limited to their contributions is called a limited partner. This type of partner invests in the partnership but does not take part in the day-to-day management of the business. Their risk is limited to the amount they have invested, which provides a level of security for their personal assets against the claims of creditors.

In contrast, a general partner typically has unlimited personal liability for the debts and obligations of the partnership, meaning their personal assets can be at risk. The terms "joint partner" and "active partner" do not specify the limitation of liability, and they may suggest different roles or responsibilities within a partnership but do not convey the specific legal protections that a limited partner enjoys. Thus, the correct identification of a limited partner is essential for understanding the structure and legal implications of various partnerships.