In a general partnership, each partner is liable for the debts of the firm
Answer and explanation
Correct answer: C. without limit, jointly with the other partners
- Step 1: Creditors can pursue partners' private assets if the firm cannot pay. Answer: without limit, jointly with the other partners. Why not the others: only up to the capital he contributed: That is limited liability. only for the debts he personally made: Partners are generally liable for firm debts. not at all: An ordinary partnership is not a separate legal person.
Practise more Agency, partnership and companies.
Free questions with an explanation for every one, and full timed KASNEB CPA Foundation Level (Kenya) mock tests.
More Agency, partnership and companies questions
- A person who is authorised to act for another and to create legal relations with third parties is called
- An agent who goes beyond his actual authority but acts as the principal's earlier conduct led others to expect, binds the principal through
- In the case of Salomon v Salomon & Co Ltd, the House of Lords established that
- What is the main advantage of limited liability for shareholders?
- Which document sets out the rules that regulate the internal management of a company?
- A public company differs from a private company in that a public company