Asked by Patryk Pyczko on May 25, 2024
Verified
Which of the following is a false statement regarding a partnership?
A) It is easy to create.
B) Income of the business is personal income.
C) Business losses can be deducted from taxes.
D) Each partner is considered an agent of the partnership.
E) In most cases,partners do not have personal liability for losses.
Personal Liability
The legal responsibility of an individual to cover debt or damages arising from their actions.
Partnership
A business entity legally formed by two or more individuals who collaborate in managing the enterprise and sharing its financial gains.
Taxes
Compulsory financial charges levied by a government on individuals, businesses, or transactions to fund public expenditure.
- Examine the implications of taxation and issues of liability across different business models.
- Identify the regulations and statutes that oversee the operations of partnerships, corporations, and limited liability companies.
Verified Answer
Learning Objectives
- Examine the implications of taxation and issues of liability across different business models.
- Identify the regulations and statutes that oversee the operations of partnerships, corporations, and limited liability companies.
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