Question 23
Business OrganisationsThe ordinary partner in a partnership
- A.takes no active part in the management of the business
- B.has limited liability in case of business failure
- C.has unlimited liability in case of business failure
- D.cannot be sued personally on matters relating to the business
Show the answer and explanation
Answer: C (has unlimited liability in case of business failure)
Explanation
An ordinary (general) partner can lose his private property to pay the firm's debts; only a limited partner has limited liability.