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Select the Most Appropriate Alternative from Those Given Below and Rewrite the Statement. - Book Keeping and Accountancy

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Question

Select the most appropriate alternative from those given below and rewrite the statement.

The liability of the partner in a firm is__________________.

Options

  • zero

  • limited

  • unlimited

  • proportionate

MCQ
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Solution

The liability of the partner in a firm is unlimited.

Explanation: Partners in a firm have unlimited liability. From legal viewpoint, a partnership is not considered as a separate legal entity from its partners. So, all partners are personally liable to the outsiders for the acts of the firm.

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Chapter 1: Introduction to Partnership - Exercise 3 [Page 14]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 1 Introduction to Partnership
Exercise 3 | Q 10 | Page 14
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