Claim to the partners' personal assets by creditors if the partnership cannot pay its debts refers to
A) liquidation
B) mutual agency
C) unlimited liability
D) dissolution

Question

Quizplus · Accepted Answer

Unlimited liability means that each partner is personally responsible for the partnership's debts. If the partnership cannot pay its debts, creditors can claim the partners' personal assets to satisfy the debts. Liquidation refers to selling off a company's assets to pay its debts, mutual agency refers to each partner's ability to act on behalf of the partnership, and dissolution refers to the legal ending of a partnership. While these concepts are related to partnerships, they do not specifically address the issue of personal asset claims by creditors.

Claim to the Partners' Personal Assets by Creditors If the Partnership