A creditor of the partnership has a claim against an individual partnerâs personal assets if the partnership has no cash.

a. True

b. False

Correct answer is a, True

Explanation:

A creditor of the partnership has claim up to the personal asset of the partner in case the partnership is insolvent. The partner who is liable up to his personal asset is the general partner. Limited partner is liable only up to his capital contribution to the partnership, provided he is registered in the articles of partnership as a limited partner and he did not partake any managerial decision making of the operation. A limited partnership consist of one or more limited partners and at least one general partner. The purpose of which at least one general partner is required is the capacity to pay outside creditors in case the partnership is insolvent.