In a general partnership, each partner is personally liable for:

A. the partnership debts that he or she created.

B. his or her proportionate share of all partnership debts regardless of which partner incurred that debt.

C. the total debts of the partnership, even if he or she was unaware of those debts.

D. the debts of the partnership up to the amount he or she invested in the firm.

E. all personal and partnership debts incurred by any partner, even if he or she was unaware of those debts.

Question

Business

Krish Andrade

9 February, 23:14

In a general partnership, each partner is personally liable for:

A. the partnership debts that he or she created.

B. his or her proportionate share of all partnership debts regardless of which partner incurred that debt.

C. the total debts of the partnership, even if he or she was unaware of those debts.

D. the debts of the partnership up to the amount he or she invested in the firm.

E. all personal and partnership debts incurred by any partner, even if he or she was unaware of those debts.

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Answers (1)

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Tate Barton · Answer 1

C. the total debts of the partnership, even if he or she was unaware of those debts.

Explanation:

In a general partnership, partners have unlimited liability. This means partners are personally liable for the total debts of the partnership, even if he or she was unaware of those debts.

A general partnership is made up of at least two partners.

In limited partnership, some of the partners are liable for the debts of the partnership up to the amount he or she invested in the firm. This is known as limited liability.