In a partnership, there is liability and creditors can recover losses from the parters' personal property.

liable

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jointly liable

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not liable

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Solution

The correct option is A liable
In case of losses, the partners not only lose their business property, but debts can be recovered from their personal property too.

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Similar questions

Q. 'A', 'B', 'C', 'D' and 'V are partners in partnership firm. The firm has different types of partners. Mr. A has contributed capital and participates in the management of firm. He shares profits and losses and is liable to an unlimited extent to the creditors of the firm.
Mr. B has contributed capital and shares its profits and losses. He also has unlimited liability but he does not take part in day to day activities of business. Association of Mr. C is not known to the general public but in all other respects he is like an active partner. Mr. D has allowed the firm to use his name as he enjoys good reputation among clients but he does not either contribute capital or take part in the management.
Master 'E', 15 years of age is entitled to the benefits of partnership with mutual consent of all their members. He is not eligible to take part in management of firm and shares only profits and not losses of the firm.
(i) How many partners do the firm has?
(ii) Who is the active partner and what is the nature of his liability in the firm?
(iii) Who is the sleeping partner in the firm and what is the nature of his liability?
(iv) What kind of partner is Mr.0 and what kind of liability does he have in the firm?
(v) How does the partnership relationship of Mr. C differs from Mr. D ? How do they differ in their liability?
(vi) Is Mast. E a legal partner? Can be held liable for the liability of the firm?

Abid and Rashid come together to form a partnership, pool in resources, and decide to share the profit and losses. Their liability is unlimited and joint. Their personal resources may be called to pay the debts of the business. What type of partnership do they share?

Q. A partner who is entitled to share in the profits of a partnership firm without being liable to the losses, is called _________.

Q. LEGAL PRINCIPLE: Every partner in a partnership firm is liable for the acts of every other partner during the course of business of the partnership firm.
FACTUAL SITUATION: A, a partner in the firm XYZ with another partner B takes loan from a bank for the partnership firm. A misuses the fund for his personal use. B is very resourceful person. Can the bank demand the entire money from B?
DECIDE.

Q. If a company suffers heavy losses and its assets are not enough to pay off its liabilities, the balance can be recovered from the private assets of its members.

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In a partnership, there is liability and creditors can recover losses from the parters' personal property.

The correct option is A liableIn case of losses, the partners not only lose their business property, but debts can be recovered from their personal property too.

The correct option is A liable
In case of losses, the partners not only lose their business property, but debts can be recovered from their personal property too.