In a general partnership, what is the extent of a partner's liability?

In a general partnership, partners are jointly and severally liable for the obligations of the partnership. This means that each partner can be held responsible for the full amount of the partnership's debts and obligations, not just a portion based on their individual investment. This liability extends to personal assets, meaning creditors can pursue any partner's personal assets to satisfy partnership debts if the partnership itself cannot cover them.

This structure ensures that all partners have a vested interest in the partnership's financial health, as poor decisions or debts incurred by one partner can affect all partners equally. This joint liability is a fundamental characteristic of general partnerships, differentiating them from limited partnerships where limited partners have liability only to the extent of their investment.