Which one of the following statements is true regarding a partner's personal liability for partnership assets?

a. In a general partnership, all partners are liable for entity debts.

b. LLC members can never be liable for entity debts.

c. In a limited liability partnership, a partner might be subject to liability for other partners' malpractice.

d. In a limited partnership, all partners have limited liability for partnership debts.

e. None of these statements are true.

Question

Business

Nicolas

3 March, 21:32

Which one of the following statements is true regarding a partner's personal liability for partnership assets?

a. In a general partnership, all partners are liable for entity debts.

b. LLC members can never be liable for entity debts.

c. In a limited liability partnership, a partner might be subject to liability for other partners' malpractice.

d. In a limited partnership, all partners have limited liability for partnership debts.

e. None of these statements are true.

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Answers (1)

Know the Answer?

Aires · Answer 1

The correct answer is A

Explanation:

General partnership is a kind of business partnership or the business arrangement in which 2 or more individuals or person agreed to share all the profits, legal liabilities, assets financial liabilities of a business which is jointly-owned. And any partner of the business might be sued for the entirety of a business debts of partnership.

So, the correct statement is that in general partnership, all partners are held liable for the debts of the entity in the partnership.