What is the extent of a partner's liability in a partnership firm?

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.