WAEC Financial Accounting 2010 Question 32

Question 32

Partnership Accounts

A partner whose liability goes beyond his capital is known as

  1. A.dormant partner
  2. B.limited partner
  3. C.general partner
  4. D.nominal partner
Show the answer and explanation

Answer: C (general partner)

Explanation

A general partner has unlimited liability: he can lose private assets as well as his capital.