Which of the Following Characteristics of a Partnership Most Likely

question 15

Multiple Choice

Which of the following characteristics of a partnership most likely explains why a public accounting firm is organized as a partnership from a public policy viewpoint?

• A) A partnership is not a taxable entity.
• B) A partnership is characterized by unlimited liability.
• C) A partnership is characterized by a fiduciary relationship among the partners.
• D) Salaries to the partners are not considered a component of net income.

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Definitions:

Common-interest Associations

Organizations formed by individuals who unite to pursue shared goals or interests, ranging from hobby clubs to professional societies.

Virtual Communities

Groups of individuals who interact through and within digital platforms or environments, sharing common interests or goals.

Lineage

The direct descent from an ancestor; the line of ancestors of a specific person or group.

Egalitarian Societies

Societies in which people have about the same rank, and share equally in the basic resources that support income, status, and power.