ACCA FA · Chapter 1 · Question 9 of 10
In an ordinary (unlimited) partnership, which of the following statements is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The partners may be personally liable for the debts of the partnership
Explanation
In an ordinary partnership the partners do not have limited liability, so their personal assets may be used to meet partnership debts. Partner salaries are an appropriation (division) of profit, not an expense. There is generally no legal requirement for an ordinary partnership to publish audited accounts, and partnerships cannot issue shares.
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