Question

State Whether the Following Statement Are True Or False (Give Reason)

The liability of partners is limited.

Options

• True

• False

Answer 1

This statement is False.

1. The liability of partner is joint, several and unlimited.
2. If the assets of the firm are insufficient to pay off the debts of the firm, then the personal property of the partners will be utilized to make the payment of the debts.
3. If anyone of the partners is declared insolvent, his liability will be borne by the solvent partners.