Lita and Linda are partners in a general partnership and have borrowed $10,000 from the bank to finance their start-up.How is their liability for the bank loan best characterized?
A) limited liability
B) joint liability
C) proportional limited liability
D) full and complete impunity

Question

Quizplus · Accepted Answer

In a general partnership, partners have joint liability, meaning they are collectively responsible for the debts and obligations of the partnership, including loans taken out for the business.

Lita and Linda Are Partners in a General Partnership and Have