CUET Preparation Today
What is the extent of a partner's liability in a partnership firm? |
Limited liability Guaranteed amount of liability Unlimited liability No liability |
Unlimited liability |
The correct answer is option 3- Unlimited liability. The liability of a partner is unlimited in a partnership firm. 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. |
