In a general partnership, how are partners' liabilities described?

• A. Limited Liability for Each Partner
• B. Jointly and Severally Liable for All Debts and Liabilities
• C. Liability Limited to Capital Contributions
• D. No Personal Liability

Answer: (B)

In a general partnership, partners are personally responsible for the business’s debts. That responsibility is unlimited and shared in two ways: it’s joint and several. This means creditors can go after all partners together or pursue any one partner for the full amount, and that partner can then seek contributions from the others to recover what was paid. Personal assets can be at risk, and liability isn’t limited to what a partner contributed or to a specific partner’s own share. This setup contrasts with entities like corporations or LLCs where owners typically enjoy limited liability, and it also isn’t limited to capital contributions alone.