Question: In a general partnership, how does liability work concerning the debts incurred by the partnership? Each partner is only responsible for their own actions and
In a general partnership, how does liability work concerning the debts incurred by
the partnership?
Each partner is only responsible for their own actions and decisions, meaning
they are not liable for debts incurred by other partners.
Partners can avoid liability for partnership debts by formally withdrawing from
the partnership before litigation has begun.
All partners share liability for the partnership's debts, which means creditors can
pursue any partner for the full amount owed, regardless of individual
involvement.
Partners have limited liability for the partnership's debts if they are not named in
the loan documents.
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