Final answer:
The partner is known as a limited partner, whose financial liability is limited to their investment in the firm.
Step-by-step explanation:
A partner in a firm who knows that the maximum financial loss he or she will experience is the amount he or she invested in the firm is called a limited partner. A limited partner's liability is restricted to the amount of their investment, meaning they are not personally liable for any debts the firm incurs beyond their initial contribution.