What is the personal liability of a general partner in a general partnership?

What is the personal liability of a general partner in a general partnership?

• A. Not limited and is joint and several
• B. Limited to the partner's ownership percentage
• C. Limited to liabilities incurred by that partner
• D. Limited to liabilities ratified by the partner

Answer: (A)

General partners in a general partnership have unlimited personal liability for the partnership’s debts, and that liability is joint and several. This means your personal assets can be used to satisfy partnership obligations, and a creditor can pursue one partner for the full amount, with that partner then seeking contribution from the others. This reflects the risk inherent in general partnerships, where each partner bears full exposure for the business’s liabilities. The other concepts suggested would imply liability is capped by ownership share, by liabilities incurred by a specific partner, or by what a partner has ratified, which doesn’t describe how personal risk works in a general partnership.

General partners in a general partnership have unlimited personal liability for the partnership’s debts, and that liability is joint and several. This means your personal assets can be used to satisfy partnership obligations, and a creditor can pursue one partner for the full amount, with that partner then seeking contribution from the others. This reflects the risk inherent in general partnerships, where each partner bears full exposure for the business’s liabilities. The other concepts suggested would imply liability is capped by ownership share, by liabilities incurred by a specific partner, or by what a partner has ratified, which doesn’t describe how personal risk works in a general partnership.