Multiple choice

Which of the following is/are correct?

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

  2. Liability of a member of a HUF is unlimited.

  3. Both of the above

  4. None of these
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A Correct answer
Explanation

In a partnership firm, partners have unlimited joint and several liability for the firm's debts - they can be held personally liable to the full extent. A HUF member's liability is limited to the extent of the HUF property, not unlimited personal liability.

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