Which of the following best describes the liability of partners in a general partnership?

In a general partnership, each partner is personally liable for the partnership's obligations, which encompasses debts and any legal obligations incurred by the partnership during its operation. This concept is rooted in the nature of a general partnership, where partners share control and actively engage in the business, meaning they also share the responsibility for its financial liabilities.

When a partnership incurs a debt or faces legal action, creditors can pursue any partner for the full amount owed, regardless of the individual partner’s specific involvement in the transaction or obligation that caused the debt. This joint and several liability means that, while partners may agree to indemnify each other internally, this does not affect their liability to third parties.

The nature of personal liability in general partnerships is a key distinctive feature from other business structures, such as corporations or limited partnerships, where liability can be limited to the amount of investment. In summary, the option accurately reflects the legal framework surrounding the liabilities of partners in a general partnership, highlighting the totality of liability each partner has concerning partnership debts.