Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 17 - No. 11)
What does 'unlimited liability' imply for partners in a general partnership?
Their liability is limited to their initial investment.
They are only liable for their own actions.
They are personally responsible for all business debts.
Their liability is capped at a pre-defined amount.
Explanation
Unlimited liability means partners are personally responsible for all debts and obligations of the partnership.
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