Which of the Following Is NOT True About Partnerships

question 23

Multiple Choice

Which of the following is NOT true about partnerships?

• A)Personal creditors of the individual partner have first call against partnership assets.
• B)A partnership is sometimes treated as a separate entity.
• C)A partnership may be sued in the firm's name,and,upon exhaustion of assets,the plaintiff may now go after the personal assets of any of the partners.
• D)Dower rights do not apply to partnerships.
• E)Generally,a person is liable only for the obligations of a partnership created while she or he is a member of the firm.

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Definitions:

Liabilities

financial obligations or debts that a business needs to settle in the future, such as loans, accounts payable, and mortgages.

Withdrawals

Amounts taken from a business by the owner for personal use.

Assets

Resources owned by a business or individual with economic value or expected to provide future benefits.

Salaries and Wages

Compensation paid to employees for their services, including both regular salary and hourly wages.