Final answer:
Limited partnerships consist of general partners, who manage the business and are fully liable, and limited partners, who contribute capital and have limited liability.
Step-by-step explanation:
There are two kinds of partners involved in limited partnerships: general partners and limited partners. General partners are involved in the day-to-day management of the business and are personally liable for the business debts and obligations. On the other hand, limited partners contribute financially to the business but do not participate in management and their liability is typically limited to the extent of their investment in the partnership. Limited partnerships provide a balance between operational control and financial risk, making it an attractive option for businesses like medical practices or law firms where start-up costs are high.