Final answer:
Each partner in a general partnership is personally liable for the entire business's debts and can lose personal assets if the business fails. There is also joint responsibility for each other's actions, potentially impacting all partners.
Step-by-step explanation:
In a general partnership, each partner is personally liable for all of the business's debts. This includes personal liability by all owners, which can present the risk of losing personal assets such as a home, car, or personal bank accounts in events such as bankruptcy or lawsuits. Unlike a limited liability partnership, which limits partners' liability to their investment in the company, a general partnership does not protect personal assets from being used to satisfy business debts.
Furthermore, in a general partnership, partners are responsible for each other's actions. If one partner incurs debts or undertakes activities that harm the partnership, the other partners may be held liable. The partnership's existence is also closely tied to the owners involved; if a partner leaves or passes away, the partnership typically must be dissolved or reformed with new partners.