Which of the following statements is true of general partnerships?
A) In general partnerships, a partner is liable only for his or her own mistakes.
B) All general partners in general partnerships have unlimited liability for the debts and obligations of their business.
C) In case of lawsuits filed against general partnerships, only the assets invested in the business by the partners are at risk and not their personal assets.
D) All general partnerships are subjected to double taxation.

Question

Quizplus · Accepted Answer

All general partners in general partnerships have unlimited liability for the debts and obligations of their business. This means that if the business is not able to pay its debts, the partners can be held personally responsible and their personal assets may be at risk.

Which of the Following Statements Is True of General Partnerships