The correct answer is: C. The partners personal assets are attached to the debt of the partnership.
A partnership is a business owned by two or more people. The partners are jointly and severally liable for the debts of the partnership. This means that each partner is personally liable
for all of the partnership’s debts, even if they were not involved in incurring the debt.In the event of bankruptcy, the partnership’s assets will be used to pay off the partnership’s debts. If the partnership’s assets are not enough to cover the debts, the partners’ personal assets may be used to satisfy the remaining debt.
Option A is incorrect because the partners are personally liable for the debts of the partnership.
Option B is incorrect because the partners’ personal assets may be used to satisfy the remaining debt if the partnership’s assets are not enough to cover the debts.
Option D is incorrect because partners cannot sell stock to generate additional capital. A partnership is not a corporation and does not issue stock.