Rosa is a partner in Silver Dragon, a partnership consisting of the owners of a restaurant. Silver Dragon incurs debt for new dining tables and chairs. 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

Rosa is a partner in Silver Dragon, a partnership consisting of the owners of a restaurant. Silver Dragon incurs debt for new dining tables and chairs. 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.

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 in the partnership. This means Rosa would be personally liable for the full extent of the debt incurred by Silver Dragon for the new dining tables and chairs.

Rosa Is a Partner in Silver Dragon, a Partnership Consisting