Which of the following statements about partnerships is true?

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Question: Which of the following statements about partnerships is true?

Options:

Correct Answer: Partners can be held personally liable for business debts

Solution:

In a general partnership, partners can be held personally liable for the debts of the business.

Which of the following statements about partnerships is true?

Which of the following statements about partnerships is true?

Step 1: Understand what a partnership is. A partnership is a business structure where two or more people share ownership and responsibilities.
Step 2: Learn about general partnerships. In a general partnership, all partners are involved in managing the business.
Step 3: Know about liability. Liability means being responsible for debts or legal obligations.
Step 4: Recognize that in a general partnership, partners can be personally liable. This means if the business owes money, creditors can go after the personal assets of the partners.
Step 5: Conclude that the statement about partners being personally liable for business debts in a general partnership is true.

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