MCQ
Select the proper option from the options given below and rewrite the completed sentence.
In partnership firm the liability of partners is ________.
Options
limited
unlimited
non of above.
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Solution
In partnership firm the liability of partners is unlimited.
Explanation:
Unlimited liability imply that, if a business’s assets are not sufficient to pay the business liabilities, then personal assets of the partners can be used to pay off the debts. Thus, in partnership firm the liability of partners is said to be unlimited.
Concept: Registration of a Partnership Firm
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