Which of the Following Statements Regarding Partnerships Is True

question 23

Multiple Choice

Which of the following statements regarding partnerships is true?

• A)Partnerships must register with the federal government.
• B)Partnerships pay taxes to the IRS.
• C)Partners must register with the state government.
• D)Partners must abide by the separate entity concept and keep their personal assets separate from the partnership assets.

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Definitions:

DRD

Dividends Received Deduction, a tax deduction in the United States that allows corporations to deduct dividends received from their taxable income.

Taxable Income

The amount of income used to calculate how much tax an individual owes to the government, considering all income sources and permissible deductions.

Charitable Organization

A nonprofit entity that operates for the public good, often focused on educational, religious, or humanitarian goals.

Publicly-traded Corporation

A company whose shares are openly sold and traded to the public on one or more stock exchanges.