Question

Assertion (A): Private assets of a partner can also be used for paying off the firm's debts.

Reason (R): Liability of a partner for acts of the firm is limited.

Choose the correct alternative from the following:

Options

• Assertion (A) is incorrect, but Reason (R) is correct.

• Assertion (A) is correct, but Reason (R) is incorrect.

• Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Answer 1

Assertion (A) is correct, but Reason (R) is incorrect.

Explanation:

A partner's liability is unlimited, not limited.