In a partnership, each partner is jointly and severally liable for the partnership's debts, regardless of which partner incurred the debt. This means that if one partner is unable to pay their share, the other partners are responsible for the entire debt.

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In a Partnership

Question 95

Multiple Choice

In a partnership

A) partners are not liable for debts of other partners if there is no partnership agreement.
B) each partner pays only his or her share of the liability even if one partner runs out of money before that partner's share is paid.
C) a partner is not responsible for debts if another partner created the liability through some action that violated the partnership agreement.
D) each partner is responsible for the debts even if the debt was the result of the actions of only one partner.
E) each partner is responsible only for the debts he or she incurred.

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