Question & Answer: What does the term "unlimited liability" mean when it's applied to partnership members?…..

What does the term “unlimited liability” mean when it’s applied to partnership members?

Expert Answer

 

The term Unlimited liability in partnership does indicates that member of the partnership is having the responsibility for all the debts. In the sense if the partnership assets are less than partnership debts, the members have to clear all the remaining debts out of his personal assets since liability assumed was unlimited.

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