How partners are liable for the debts and obligations of the firm?
(i) Jointly
(ii) Severally
Select the correct answer from the options given below.

(i) only

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(ii) only

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Both (i) and (ii)

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Neither (i) nor (ii)

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Solution

The correct option is C Both (i) and (ii)
A partnership basically refers to the contract between two or more people who have agreed to carry on certain business in order to achieve common goals. In a partnership firm, the partners have unlimited liability which means in the case of insolvency of the firm the credits can claim their outstanding on firms asset which is contributed jointly by the partners or they can even claim upon the personal assets of the partners.

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