Rosa is a partner in Sugar & Spice, a partnership consisting of the owners of a bakery. Sugar & Spice incurs debt for new ovens. With respect to this debt, Rosa is
A)not liable.
B)only liable to the amount of her capital contribution.
C)only liable in proportion to the number of partners in the firm.
D)personally liable to the full extent.

Question

Quizplus · Accepted Answer

In a general partnership, each partner is personally liable for the debts of the business to the full extent of their personal assets, not just to the amount of their investment or in proportion to their share of ownership. This means that if the partnership cannot pay its debts, creditors can seek repayment from any or all of the partners' personal assets.

Rosa Is a Partner in Sugar & Spice, a Partnership