Multiple choice

Which of the following is correct

  1. liability of a partner in a partnership firm is unlimited

  2. liability of a member of a HUF is unlimited

  3. both (1) and (2)

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Partners have unlimited liability for firm debts, meaning personal assets can be used to pay firm obligations. HUF members have limited liability restricted to their share in the family property. Option A correctly states unlimited partner liability. Option B incorrectly suggests HUF members have unlimited liability.

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