Limited
Unlimited
Joint liability
Separate liability
✅ The correct answer is B.
The liability of partners in a firm is Unlimited. Unlimited liability refers to the legal obligations general partners and sole proprietors because they are liable for all business debts if the business can’t pay its liabilities.
The liability of partners in a firm is Unlimited. Unlimited liability refers to the legal obligations general partners and sole proprietors because they are liable for all business debts if the business can’t pay its liabilities.