English

State Whether the following Statement is True or False: The liability of partners is limited.

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Question

State Whether the following Statement is True or False:

The liability of partners is limited.

True or False
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Solution

The statement is false.

Explanation:

In a traditional partnership firm under the Indian Partnership Act, 1932, the liability of partners is unlimited. Each partner is jointly and severally liable for the debts and obligations of the firm.

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Chapter 1: Accounting for Partnership Firms - Fundamentals - OBJECTIVE TYPE QUESTIONS [Page 1.142]

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D. K. Goel Accountancy Part A Volume 1 and 2 [English] Class 12
Chapter 1 Accounting for Partnership Firms - Fundamentals
OBJECTIVE TYPE QUESTIONS | Q (B) 8. | Page 1.142
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