What is meant by ‘unlimited liability of a partner’?
Liability of partners is unlimited, i.e., Firm’s liabilities can be paid from their personal assets.
Liability of Partners is unlimited. It means that partners are liable for firm’s debts individually and jointly with other partners.
Net Private Assets of a partner (i.e., Private Assets – Private Debts) can be used to pay firm’s debts if firm’s assets are less than firm’s debts.
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