State with reasons whether the following statements are True or False.
In a partnership firm, the liability of partners is unlimited.

A

True

B

False

Greetings to all the aspiring business leaders and scholars! Welcome to the dynamic realm of business studies, where the intricacies of commerce and strategy converge. As you embark on this educational journey, you’ll gain insights into the world of entrepreneurship, management, economics, and innovation. The business landscape thrives on diverse perspectives, and each of you brings a unique lens to understanding how organizations thrive and economies evolve. Get ready to explore case studies, analyze market trends, and cultivate the skills necessary to navigate the ever-changing business environment. Your dedication to mastering these concepts will undoubtedly pave the way for future success and innovation. So, seize this opportunity to learn, grow, and contribute to the world of commerce in meaningful ways.
And now we give you the correct answer:

Approved answer

Correct option is A)

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.