Unlimited liability refers to
A)a claim to the partners' personal assets by creditors if the partnership cannot pay its debts.
B)the ability of any partner to bind the partnership to a business agreement as long as he or she acts within the scope of the company's normal operations.
C)co-ownership of partnership property.
D)the method of income distribution.

Question

Quizplus · Accepted Answer

Unlimited liability means that the partners are personally responsible for all of the debts and obligations of the partnership. This means that creditors can claim the personal assets of the partners to pay off any outstanding debts, even if it means liquidating their personal savings, investments, or property.

Unlimited Liability Refers to