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easyMCQCUET Accountancy 2025 2 June Shift 22026CUET Accountancy
1 mark

The liability of partners in a general partnership firm is:

  1. A
    Limited to the value of shares held
  2. B
    Limited to amount of investment
  3. C
    Limited to the amount of guarantee
  4. D
    Unlimited

Solution & Step-by-step Explanation

Under the Indian Partnership Act, 1932, partners have unlimited liability. This means their personal assets can be liquidated to pay off the firm's debts if the firm's assets are insufficient.

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The liability of partners in a general partnership firm is:
A
Limited to the value of shares held
B
Limited to amount of investment
C
Limited to the amount of guarantee
D
Unlimited

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PartnershipStatutory Provisions

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