State with reasons whether the following statements are True or False.
In a partnership firm, the liability of partners is unlimited.
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And now we give you the correct answer:
As per the Partnership Act 1932, the liability of the partners in a partnership firm is unlimited. In case when the dues of the third parties cannot be paid from the assets of the firm, the partners will have to pay the amount out of their personal assets. Also, each partner is bound by the act of the other partners.