Final answer:
The correct answer is that general partners have unlimited liability, meaning they are fully responsible for the debts and obligations of the partnership.
Step-by-step explanation:
The correct statement with respect to partnership is B) General partners have unlimited liability. In a general partnership, partners share responsibility for managing the business and each can act as an agent for the other. However, this also means they share unlimited personal liability for the debts and obligations of the business.
If the business incurs debts or is taken to court, personal assets of the general partners can be used to satisfy the business's debts. This contrasts with a limited liability partnership (LLP), where partners have their liability limited to their investment in the company. General partners in a partnership, therefore, have unlimited liability and responsibility for the actions of the other partners.