Unlimited _ because partner of a. firm ..is also owner of the firm. and all liabilities of firm carried by the partners ..

Liability of partner is Unlimited.



The liability of a partner in a partnership firm refers to the extent to which the partner is personally responsible for the debts and obligations of the firm. It determines the financial risk that a partner assumes while operating the business.

In a partnership, the liability of a partner can be categorized into three types:

1. Unlimited Liability:
- In a general partnership, the liability of partners is unlimited, which means they are personally liable for the debts and liabilities of the firm.
- If the partnership firm fails to clear its debts, the personal assets of the partners can be used to satisfy the obligations.
- Each partner is jointly and severally liable for the firm's debts, which means that a creditor can sue any partner individually or collectively to recover the outstanding amount.

2. Limited Liability:
- Limited liability is a feature of certain types of partnerships, such as limited liability partnerships (LLPs) and limited partnerships (LPs).
- In an LLP, partners have limited liability, and their personal assets are not at risk in case of business failure or debt. Their liability is limited to the extent of their investment in the firm.
- In an LP, there are general partners with unlimited liability and limited partners with limited liability.
- Limited partners have liability restricted to the amount of their contribution to the partnership and are not personally liable for the firm's debts beyond that.

3. Restricted Liability up to Capital or Profits:
- This option is not a correct answer.
- The liability of a partner is not restricted to the amount of their capital contribution or the profits earned by the firm.
- Even if a partner has not contributed any capital or the firm has not earned any profits, they can still be held personally liable for the firm's debts.

Therefore, the correct answer is option b) Unlimited, as the liability of a partner in a general partnership is unlimited.