Vidyalelo
Commerce · Q13

Business and Commerce

Graduate and Post Graduate · Commerce · question 13

Q13

Liability of partners in respect of the firms debts is _______.

A.
limited up to the amount of his capital in the business
B.
Unlimited
Answer
C.
limited up to the amount of guarantee given by the partner
D.
limited up the amount of his capital and loan to the firm if any

Answer: Option B

Solution

Answer: Option B
Solution:
Partners of typical partnership firms have unlimited liability towards their collective debts and legal consequences.