Alabama Real Estate Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

What describes the liability in a general partnership?

Limited to investment

Equal among all general partners

In a general partnership, all partners share equal liability for the company's debts and legal obligations. This means that they are each personally responsible for the actions and debts of the partnership, regardless of the investment made by each partner. Option A is incorrect because the liability is not limited to just the investment made by each partner. Option C is incorrect because all general partners have liability. Option D is incorrect because the liability is not determined by a management team, but rather shared equally among all partners.

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No liability

Determined by a management team

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