Question

A partner by holding out is personally liable to _______________ .

• A. all outsiders
• B. all existing suppliers
• C. who has given credit to the firm on his representation
• D. to all who have given credit to the firm

Answer 1

Answer: (C)

who has given credit to the firm on his representation

A partner by holding out means a person who is not a member of firm but allows himself/herself to be represented as a partner. Such person is responsible to person who has given loan to firm on his representation because loan has been given by assuming that he/she is member.