Fred and Carole were trying to create a list of the pros and cons of sole proprietorship,partnership,and corporation to determine the best structure for carrying on business.Which of the following is true regard to being a general partner?

Question

Quizplus · Accepted Answer

As a general partner, an individual is an agent for both their fellow partners and the partnership itself. This means that they can be held liable for contracts made by other partners, even if they were unaware of those contracts. This is known as joint and several liability, and it is unique to partnerships. The other statements are all incorrect. A partner in a partnership typically has unlimited liability for the debts of the partnership, and retiring from a partnership does not necessarily relieve that partner from debts or other obligations incurred while they were a partner. Additionally, personal assets can be used to satisfy partnership debts even if no criminal act was committed.

Fred and Carole Were Trying to Create a List of the Pros