Which of the Following Statements About a Partnership Is True

question 102

Multiple Choice

Which of the following statements about a partnership is true?

• A)A partnership is a taxpaying entity.
• B)Partners are taxed on distributions from a partnership.
• C)Partners are taxed on their allocable share of income whether it is distributed or not.
• D)Partners are considered employees of the partnership.

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Definitions:

Planning Process

A systematic approach to setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals set by an organization.

Job Sharing

An employment arrangement where two or more individuals share the responsibilities and duties of a single full-time job.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Indexation

The adjustment of income, benefits, or prices by a predetermined rate or index to account for inflation or other economic changes.