Which of the Following Statements Regarding Partnerships Is True

question 115

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:

Market Value

The market's current rate for transactions involving an asset or service.

Bond

A fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental, where the issuer owes the holders a debt and is obliged to pay interest and/or to repay the principal at a later date, termed maturity.

Maturity

The date on which a financial obligation or investment becomes due for payment or is to be repaid in full.

Coupon Rate

The yield paid by a fixed-income security; a fixed percentage of the par value of the bond, paid to the investor annually or semi-annually.