Question

In a firm the liability of a partner is ______.

Options

• Limited

• Unlimited

• No liability

Answer 1

In a firm the liability of a partner is unlimited.

Explanation:

Each partner in a partnership company is responsible for everything that goes wrong. In other words: 

• Partners are responsible for the firm’s bills and losses on their own.
• If the company doesn't have enough assets to cover its debts, partners may have to use their own money to pay them off.