The characteristic of a partnership whereby each partner is liable for partnership debts to the full extent of his or her private assets is known as:
A) limited life.
B) unlimited liability.
C) limited liability.
D) mutual agency.

Question

Quizplus · Accepted Answer

Unlimited liability is a characteristic of a partnership where each partner is personally responsible for all debts and liabilities of the partnership. This means that the partners' personal assets can be used to pay off any debts owed by the partnership. It is important for partners to be aware of this risk before entering into a partnership agreement.

The Characteristic of a Partnership Whereby Each Partner Is Liable