What is a limited partnership?

A limited partnership is characterized by having at least one general partner with unlimited liability and one or more limited partners whose liability is restricted to the extent of their investment in the partnership. This means that limited partners are not involved in the day-to-day operations of the business and their financial risk is capped, safeguarding their personal assets from the debts and obligations of the partnership beyond their investment.

In contrast, a partnership with equal active roles refers to a general partnership where all partners manage the business and share liability equally. A partnership solely for real estate investment does not account for the essential legal structure and definitions, focusing instead on the limited scope of activity. A partnership with unlimited liabilities, on the other hand, would apply to a general partnership model where all the partners are fully responsible for the obligations of the business without limits on their personal liability.

Thus, the defining characteristic of a limited partnership is the restricted liabilities for the limited partners, making option B the correct answer.