Which of the Following Holds True for a General Partnership

question 25

Multiple Choice

Which of the following holds true for a general partnership if the partners have not entered into a written agreement?

• A) Partners are required to contribute equal capital to the partnership and bear equal responsibilities.
• B) Individual partners are exempted from federal income taxes because those taxes are paid by the partnership.
• C) Partners are required to file a partnership return with the Internal Revenue Service that shows the partnership's profit or loss.
• D) The partnership is double-taxed because both the partnership and the individual partners pay taxes.

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