Alabama Real Estate Practice Exam

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Master your Alabama real estate exam with our comprehensive practice test. Tailored feedback, expert tips, and up-to-date questions to ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What describes the liability in a general partnership?

Limited to investment
Equal among all general partners
No liability
Determined by a management team

The correct answer is: 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.