A Partner

question 50

Multiple Choice

A partner:

• A) cannot be held criminally liable for the crimes of his partners.
• B) may be criminally liable for the crimes of his partners if he authorized the acts.
• C) who commits a tort is liable to the third party only through the partnership entity.
• D) has joint and several liability with his partners for contracts entered and for torts and crimes committed by other partners.

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Definitions:

Permitted Deductions

Allowable subtractions from gross income that reduce taxable income, as defined by tax laws.

Flat Tax

A tax system with a constant rate, where taxpayers pay the same percentage of their income regardless of the level of their income.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Average Tax Rate

The proportion of total income paid in taxes, calculated by dividing total tax amount by total income.