Which of the following is an example of passive activity?

A limited partnership is considered an example of passive activity because, in this structure, the limited partners typically do not participate in the day-to-day operations of the business. Instead, they invest capital and receive income or losses without being actively involved. The Internal Revenue Service (IRS) often categorizes activities based on the level of participation an individual has in them. In a limited partnership, the limited partners enjoy protection from liability and the benefits of potential earnings without the responsibilities that accompany active management.

On the other hand, options involving owning a retail store, actively managing a restaurant, and full-time consulting require active engagement and management of the business or service, which does not align with the definition of passive activity.