When the obligations of a partnership can't be met, each partner is liable for the obligation. This characteristic is called A. limited life. B. unlimited liability. C. limited liability. D. mutual agreement

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Mathematics

Mckee

30 July, 07:13

When the obligations of a partnership can't be met, each partner is liable for the obligation. This characteristic is called A. limited life. B. unlimited liability. C. limited liability. D. mutual agreement

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Bethany Vance · Answer 1

The answer to this question is B. unlimited liability

In partnership, all partners involved acted as one united entity, even though the percentage of ownership is different.

So, when a partner make a certain debt in the name of the firm, all partners in that firm is required to a certain percentage of that debt depending on how much ownership they had in the firm. If one partner couldn't pay their percentage, other members are legally binded to chip in.