If a business is not able to pay its debts, under a general partnership, the debt is transferred to the owners.

Name: If a business is not able to pay its debts, under a general partnership, the debt is transferred to the owners.
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In a general partnership, the owners (partners) have unlimited liability, meaning they are personally responsible for the debts of the business. If the business cannot pay its debts, creditors can seek repayment from the personal assets of the partners.

If a Business Is Not Able to Pay Its Debts