Final answer:
Recourse partnership debt implies that partners are personally responsible for the debt, with allocations typically made according to profit-sharing ratios. It is distinct from limited liability partnerships where partners' personal assets are generally protected.
Step-by-step explanation:
Characteristics of recourse partnership debt include the fact that partners have the ultimate responsibility to pay the debt out of their own pockets. This means that if the partnership fails to pay its debts, the creditors can require the partners to make up any shortfall with their personal assets. Generally, the debt is allocated based on the partner's profit-sharing ratios, which align with how profits and losses are distributed among partners in a typical partnership agreement. Additionally, the allocation of recourse debt is to partners who are ultimately responsible for paying it back, again highlighting the personal liability aspect of general partnerships. In contrast to general partnerships, a limited liability partnership (LLP) provides protection for partners from personal liability beyond their investment in the company. This means that in the event of the company failing, the personal assets of the partners, such as a home or personal bank accounts, would generally be protected.