Arkansas Contractor Business and Law Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide

In a dissolved partnership, the responsibility for outstanding bills does not fall solely on the partner who has paid their share. When a partnership is dissolved, the partnership is still liable for any existing debts incurred during the time it was operational. This means that both partners are generally responsible for the debts of the partnership until they are fully resolved.

The correct understanding of this situation is that the partnership itself retains liability for debts owed to third parties. If one partner refuses to pay their share, the other partner might need to cover the full amount to protect their interests, especially if a creditor seeks payment. However, the partnership arrangement does not absolve the unpaid partner of their responsibility for the debt; it merely places additional financial burden on the partner who pays.

Consequently, the remaining options suggest different variations of responsibility that do not accurately reflect the legal framework governing partnerships and their liabilities. The partnership as a whole, including both partners, remains responsible for fulfilling outstanding financial obligations to third parties until the debts are satisfied.