Vidyalelo
Commerce · Q136

Business and Commerce

Graduate and Post Graduate · Commerce · question 136

Q136

The liability of partners in a firm is _________.

A.
Limited
B.
Unlimited
Answer
C.
Joint liability
D.
Separate liability

Answer: Option B

Solution

Answer: Option B
Solution:
The liability of partners in a firm is Unlimited. Unlimited liability refers to the legal obligations general partners and sole proprietors because they are liable for all business debts if the business can't pay its liabilities.