Final answer:
True. On dissolution of a partnership, creditors of the partnership can claim the partnership's assets, but individual partners' creditors cannot. In a limited liability partnership, partners' personal assets are protected beyond their investment in the company.
Step-by-step explanation:
The statement is true: on dissolution, the creditors of the partnership can make claims on the partnership's assets, but not the creditors of the individual partners. On dissolution of a partnership, creditors of the partnership can claim the partnership's assets, but individual partners' creditors cannot. In a limited liability partnership, partners' personal assets are protected beyond their investment in the company.
A partnership is seen as a separate entity from the individual partners when it comes to debt obligations. Each partner in a general partnership can be held personally liable for business debts, and this can impact their personal assets. However, limited liability partnerships are structured to protect individual partners from personal liability beyond their investment in the company, thereby safeguarding personal assets like homes and personal bank accounts from company debts and liabilities.