Partnership the liability of every partner of a firm is unlimited. (State with reason whether the given statement is true or false)
Answers
Answer:
The given statement is true. In the case of a general partnership this is a stated and well understood fact that all partners who are members in the business, in the "partnership", share unlimited liability. According to this, if one partner is liable for paying the debts of the business, this condition applies to all the partners. Every partner has to bear this responsibility.
Explanation:
It mainly depends on the type of partnership formed, if the members have the ability of sharing unlimited liability or not. For instance, if the partnership is General partnership,
Limited partnership,
Limited liability partnership or
Limited liability limited partnership.
Answer:
False
Explanation:
Limited Liability Partnership:- Limited Liability Partnership has been seen as an alternative business that provides limited liability benefits but also gives its members the flexibility to organize the internal structure as a mutual agreement based partnership. Provides the limited liability partnership form enables entrepreneurs, professionals, and enterprises to provide any type of service or engage in scientific and technical disciplines so that they can carry out efficient commercial work as per their requirements. Due to flexibility in its organization and operations, limited liability is also suitable for partnership, small enterprises, and new capital investment. Therefore, there should be a limited liability partnership for specific work as per the partner's authority and duties act.