What type of investment allows for limited involvement but limited liability?

A limited partnership is a type of investment where there are two categories of partners: general partners and limited partners. General partners manage the day-to-day operations of the partnership and hold unlimited liability for the debts and obligations of the business. In contrast, limited partners contribute capital to the partnership but do not participate in its management. Their liability is restricted to the extent of their investment, meaning they are not personally liable for the partnership’s debts beyond their investment amount.

This structure allows for individuals to invest in a business or project without taking on the full risks associated with managing that business. In contrast, other options, such as a general partnership, involve full personal liability for all partners involved. In a joint venture, while the individuals may limit their liability through specific agreements, it does not inherently provide the same structure as a limited partnership in terms of passive investment. A real estate trust, often structured as a REIT (Real Estate Investment Trust), allows for passive investment in real estate but has different regulatory and operational frameworks compared to a limited partnership.

Thus, a limited partnership distinguishes itself by allowing limited involvement for the limited partners along with limited liability, making it the most suitable answer.