What is a characteristic of joint and several liability in a partnership?

Joint and several liability is a legal concept often associated with partnerships, where each partner can be held liable for the entire amount of a judgment against the partnership. This means that if the partnership is unable to meet its debt obligations or liabilities, a creditor can pursue any one partner for the full amount owed.

This characteristic promotes accountability among all partners because it encourages them to ensure that the business operates responsibly and ethically, knowing that their personal assets might be at risk if the partnership fails to meet its obligations. If one partner does not have sufficient assets to cover a debt, the other partners may be required to contribute more than their fair share to fulfill the partnership's liabilities.

The other options do not capture this essential aspect of joint and several liability. Individual liability for each partner would imply that partners are only responsible for their own actions, which does not reflect the combined responsibility present in joint and several liability. Shared liability suggests that partners share the responsibility evenly, but in practice, a creditor can target any one partner regardless of the share they might normally bear. Liability limited to business profits does not apply here, as joint and several liability can extend to personal assets beyond just business profits. Lastly, liability only in cases of fraud suggests a narrow scope of responsibility that is