Which of the Following Is True About a Partnership

question 48

Multiple Choice

Which of the following is true about a partnership?

• A)It is not a tax-paying entity for federal income tax purposes.
• B)Business losses are deductible based on the limit on a partner's individual tax return.
• C)It does not have a life apart from its owners.
• D)Partners of a partnership do not assume personal liability for obligations of the business.

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Definitions:

Licensed

Having received official permission by a regulatory authority or body to engage in a professional activity or business.

Residential Home Builder

A professional or company specializing in the construction of single-family houses or multi-unit residential buildings.

Enforce Payment

The legal process or measures taken to compel the payment of a debt or financial obligation.

Exculpatory Clauses

Provisions in a contract that release one party from liability for damages caused during the execution of the contract, often by negligence.