Final answer:
A partner whose liability for partnership debts is only to the extent of what he has invested in the partnership is called a limited partner. Limited partners have their liability limited to the extent of their investment in the partnership, protecting their personal assets from being at risk.
Step-by-step explanation:
A partner whose liability for partnership debts is only to the extent of what he has invested in the partnership is called a limited partner.
In a limited partnership, there are typically two types of partners: general partners and limited partners. General partners have unlimited liability and are responsible for the partnership's debts and obligations. On the other hand, limited partners have their liability limited to the extent of their investment in the partnership, protecting their personal assets from being at risk.
An example of a limited partner could be someone who contributes capital to a business partnership but does not actively participate in the management or decision-making of the business.