Answered: What is the liability of partners in a…

What is the liability of partners in a partnership firm? Select one: A.Limited B. No Liability C. Unlimited D. Limited to the capital of business

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3MC: Which of the following is a disadvantage of the partnership form of organization? A. limited life B....

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Question

What is the liability of partners in a partnership firm?

Select one:

A.Limited

B. No Liability

C. Unlimited

D. Limited to the capital of business

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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