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Question

Select the most appropriate alternative from those given below and rewrite the statement.

The liability of the partner in a firm is__________________.
a) zero
b) limited
c) unlimited
d) proportionate

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Solution

The liability of the partner in a firm is unlimited.
Explanation: Partners in a firm have unlimited liability. From legal viewpoint, a partnership is not considered as a separate legal entity from its partners. So, all partners are personally liable to the outsiders for the acts of the firm.

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