How do business partners share liability?

They share liability only if ordered to by a court ruling.

They share all liability jointly.

They share liability based on the partnership agreement.

They share liability based on who invested the most.

Answer: They shared liability based on the partnership agreement.

Explanation:

Business partners are people doing a formal business together I. e the parties that formed the business both directly and indirectly. However, this partners are bonded by a contract called "a partnership dees". Contained in this document is how the partners with share the profit or loss accrued from the business. It's mostly in percentage according to each partners capital.

Other information in a partnership deed are:

- interest in capital

- partners salaries

- interest on drawings etc.