1
Question
Generally a partnership firm liability is _________.
Generally a partnership firm liability is _________.
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Solution
The correct option is B unlimited
Unlimited liability is an indefinite extent of liability to pay a firm's debts , extent of liability to pay a firm's debts, extending beyond the investment put in the business. Every partner in a partnership has unlimited liability for all of the partnership debts . It is very much like a sole proprietor's unlimited liability but one crucial difference you are now personally responsible for debts of the business, even if you had nothing to do with creating them.
Unlimited liability is an indefinite extent of liability to pay a firm's debts , extent of liability to pay a firm's debts, extending beyond the investment put in the business. Every partner in a partnership has unlimited liability for all of the partnership debts . It is very much like a sole proprietor's unlimited liability but one crucial difference you are now personally responsible for debts of the business, even if you had nothing to do with creating them.
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