Who bears unlimited liability in a general partnership?

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Multiple Choice

Who bears unlimited liability in a general partnership?

Explanation:
In a general partnership, partners face unlimited personal liability for the debts of the business. That means creditors can pursue each partner’s personal assets to satisfy partnership obligations, and partners are typically liable both jointly and severally. Limited partners, by contrast, have liability limited to their investment as long as they stay out of day-to-day management; if they participate in management, they risk losing that limited status. So the group that bears unlimited liability is the general partners.

In a general partnership, partners face unlimited personal liability for the debts of the business. That means creditors can pursue each partner’s personal assets to satisfy partnership obligations, and partners are typically liable both jointly and severally. Limited partners, by contrast, have liability limited to their investment as long as they stay out of day-to-day management; if they participate in management, they risk losing that limited status. So the group that bears unlimited liability is the general partners.

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