Question

If your partnership closes and you have outstanding debt, you are required to pay back the debt. You would have this type of liability.

Unlimited

Limited

Answer 1

Unlimited

Step-by-step explanation:

Unlimited liability means that a partner is liable to all the debts and obligations of the partnership. If the business resources are unable to settle its debts, then the partner will be required to meet the obligations using personal funds.

The liabilities of the partnership as a business are, by extension, debts to the partner.