In a general partnership, how are debts typically handled regarding personal assets?

In a general partnership, each partner is fully liable for all debts incurred by the partnership. This means that if the partnership cannot meet its financial obligations, creditors can pursue each partner's personal assets to satisfy the debts. This aspect of personal liability is a defining characteristic of a general partnership, distinguishing it from other business structures like limited partnerships or corporations, where liability may be limited to the amount invested.

Considering the other options: stating that only partnership assets are liable would suggest that personal assets are fully shielded, which is not the case in general partnerships. The claim that personal assets are never at risk contradicts the fundamental principle of personal liability inherent in a general partnership. Lastly, while liabilities are often shared among partners, the key factor is that each partner can be pursued for the totality of the debts, not just their share. This highlights the importance of trust and cooperation among partners, as each takes on the full legal responsibility for the partnership's financial commitments.