A partner's liability for firm debts is limited to his capital contribution.

Question

Quizplus · Accepted Answer

In a general partnership, partners have unlimited liability for the debts and obligations of the firm. Their personal assets may be used to satisfy those debts, even if it exceeds their initial capital contribution. However, in a limited partnership or limited liability partnership, partners may have limited liability based on the structure of the partnership.

A Partner's Liability for Firm Debts Is Limited to His