The liability of partners in a firm is _________. A. Limited B. Unlimited C. Joint liability D. Separate liability

The correct answer is: B. Unlimited

Partners in a firm have unlimited liability, which means that they are personally liable for the debts and obligations of the firm. This means that their personal assets, such as their homes and cars, can be used to satisfy the firm’s debts.

Limited liability is a legal concept that limits the financial liability of a company’s owners (shareholders) to the amount they have invested in the company. This means that shareholders are not personally liable for the debts and

Joint liability is a legal concept that holds all parties jointly and severally liable for the debts and obligations of a company. This means that each party is liable for the entire amount of the debt, even if they only contributed a small amount to the company.

Separate liability is a legal concept that holds each party liable for their own debts and obligations. This means that each party is only liable for the amount of debt that they personally owe.

In conclusion, the liability of partners in a firm is unlimited. This means that they are personally liable for the debts and obligations of the firm.