Who is responsible for the acts and obligations of a partnership?

In a partnership, each partner is jointly and severally liable for the acts and obligations of the partnership. This principle means that each partner can be held responsible not only for their own actions but also for the actions of the other partners and the partnership as a whole. If the partnership incurs debt or faces a lawsuit, a creditor can pursue any one of the partners for the entire amount owed, making it essential for partners to trust and monitor one another.

This structure promotes accountability, as each partner has a vested interest in the actions and decisions made by their co-partners. For example, if one partner mismanages funds or engages in unlawful conduct, all partners are at risk of facing financial and legal consequences.

In contrast, the other options highlight specific aspects of partnerships that do not capture the comprehensive liability shared among all partners. Sole liability of a managing partner, or limited partners, does not reflect the typical legal framework governing partnerships, as those arrangements do not generalize the broad accountability that joint and several liabilities encompass.