Which of the Following Statements Is Not Correct

question 80

Multiple Choice

Which of the following statements is not correct?

• A) Each general partner has unlimited liability for the debts of a partnership.
• B) Federal income tax is levied on the net income of a partnership and on the earnings of the individual partners when the net income is distributed to them.
• C) Any general partner can make valid contracts for a partnership and can otherwise conduct its affairs.
• D) When a partner dies or is incapacitated,the partnership is dissolved.

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