Partners' personal assets: a. cannot be reached by partnership creditors. b. cannot be reached by partnership creditors unless partnership assets are exhausted. c. can only be reached by personal creditors. d. none of the above

Question

Emmalee Francis

Business

23 August, 10:47

Partners' personal assets: a. cannot be reached by partnership creditors. b. cannot be reached by partnership creditors unless partnership assets are exhausted. c. can only be reached by personal creditors. d. none of the above

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Big Bird · Answer 1

the correct answer is b. cannot be reached by partnership creditors unless partnership assets are exhausted.

Explanation:

A partnership is generally not a Limited Liability company. (but there is a less popular Limited partenrship form, but even there, some parterns are unlimitedly liable.)

when the firm lacks the limited liability owners are responsible for the obligations even from their personla fortune, and if the firm cannot pay off the obligations from the firm's own assets, then the parterns are liable personally.