Which of the Following Statements Concerning Partnerships Is False

question 51

Multiple Choice

Which of the following statements concerning partnerships is false?

• A) A properly-drafted partnership agreement is crucial.
• B) A general partner's basis in a partnership includes his share of partnership debt.
• C) Limited partnerships must have at least one general partner.
• D) A partner is taxed annually on only that portion of a partnership's taxable income that is actually distributed.

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Definitions:

Statistical Analysis

A method of collecting, reviewing, and interpreting data to discover patterns, correlations, or trends.

Present Value

It measures the current value of a future amount of money or stream of cash flows, using a specific discount rate to account for the time value of money.

Projected Future Cash Flows

An estimation of the amount of money expected to be received and paid out by a business over an upcoming period.

Fundamental Analysis

An approach to evaluating a security that involves analyzing financial statements, health of the economy, industry conditions, and other factors to determine a security's intrinsic value.