CUET Preparation Today
The liability of partners is: |
Limited to the value of shares held Limited to amount of investment Limited to the amount of guarantee Unlimited |
Unlimited |
The correct answer is option 4- Unlimited. The liability of partners is unlimited. Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm done while he is a partner. Not only that the liability of a partner for acts of the firm is also unlimited. This implies that his private assets can also be used for paying off the firm’s debts. |
