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A client sues a partnership firm for not delivering goods on time. The court orders all partners to pay compensation using their personal assets. What feature of partnership leads to this situation? - Commercial Applications

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Question

A client sues a partnership firm for not delivering goods on time. The court orders all partners to pay compensation using their personal assets. What feature of partnership leads to this situation?

Options

  • Unlimited liability

  • Mutual agency

  • Sharing of profits and losses

  • Restriction on transfer of interest

MCQ
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Solution

Unlimited liability

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Chapter 3: Ownership Structures - Partnership - EXERCISES [Page 41]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 3 Ownership Structures - Partnership
EXERCISES | Q I. 26. | Page 41
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