1. If a partnership is unable to pay its debts, the partners have to pay it with their personal assets. To what characteristic of societies is this due? a. to. mutual agency b. Co-owners of the property c. limited life d. unlimited liability 2. When a partner is admitted to a partnership by directly buying the interest from an existing partner, the partnership books will reflect: a. to. No change in total assets, liabilities or equity b. An increase in total assets c. An increase in total capital d. An increase in total liabilities 3. In the Statement of Situation (Balance Sheet) of a company (Partnership), the following will be presented: a. to. retained earnings after principal. b. a separate capital account for each partner c. the amount of income distributed to each partner d. the additional investment of each partner