Question

Liability of Partners of partnership firm is ______

Options

• Limited Liability

• Unlimited Liability

• Can't say

• None of these

Answer 1

Liability of Partners of partnership firm is Unlimited Liability.

Explanation:

Each partner is jointly and severally liable to all other partners and to a third party for the firm's conduct committed while he is a partner. Not only that, but a partner's culpability for the firm's actions is also limitless. This means that his personal assets can be utilized to pay off the company's debts.