In terms of liability in a partnership firm, what does it mean for a partner to be "severally" liable?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Partners are liable only for their own actions.
When a partner is "severally" liable, it means that they are personally responsible and liable only for their own actions, debts, and obligations within the partnership. This implies that each partner is individually accountable for their own conduct.