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Question
Liability of a partner is ______.
Options
Limited
Unlimited
Determined by Court
Determined by Partnership Act
MCQ
Fill in the Blanks
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Solution
Liability of a partner is unlimited.
Explanation:
In a partnership firm, the liability of each partner is unlimited, meaning they are personally liable for the debts of the firm beyond their capital contribution. If the firm’s assets are insufficient to cover its liabilities, the partner’s personal assets can be used to pay the firm’s debts. This is a key feature of partnerships under the Indian Partnership Act, 1932.
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