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Question
State the ‘liability of a partner’ in a partnership firm.
Short Answer
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Solution
In a partnership firm, the liability of a partner is unlimited and several, meaning that the personal assets of the partner can be used to cover the firm’s debts. Each partner is personally liable for all of the firm’s obligations, and they may be required to contribute more than their share of capital if the firm’s assets are insufficient to pay off its debts.
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