Every partner is a creditor of the partnership for whatever he or she promised to contribute to the common fund.Group of answer choicesTrueFalse

The statement "Every partner is a creditor of the partnership for whatever he or she promised to contribute to the common fund" is True.

In a partnership, each partner typically has an obligation to contribute to the common fund, which is essential for the operation and success of the business. When a partner promises to contribute a specific amount of capital, they essentially create a creditor-debtor relationship in the context of their contributions, meaning that the partnership is indebted to the partner for the amount promised until it is actually contributed. Thus, partners are seen as creditors regarding their committed contributions until those contributions are made.

Moreover, this framework helps in ensuring accountability and aligns the partners' interests with the sustainability and growth of the partnership, making it a foundational aspect of partnership agreements.