Question

An owner who is active in managing the company, and who has unlimited liability for claims against the firm is a(n) ___________ partner." add period at end of this sentence.

Answer 1

An owner who is active in managing the company, and who has unlimited liability for claims against the firm is a "general" partner.

A general partnership, the essential type of association under common law is a course of action by which at least two people consent to partake in all advantages, benefits and monetary and legitimate liabilities of a business. Such partners have boundless liability, which implies their own assets are at risk to the partnership's commitments.