Which of the Following Is False Regarding a General Partnership

question 8

Multiple Choice

Which of the following is false regarding a general partnership?

• A) It is easy to create.
• B) Income of the business is personal income.
• C) Business losses can be deducted from taxes.
• D) The partners are considered agents of the partnership.
• E) In most cases partners do not have personal liability for losses.

---

Definitions:

Caveat Emptor

Latin for "let the buyer beware," indicating that the buyer assumes the risk for the quality and condition of goods purchased unless protected by warranty.

Sale of Goods Act

Legislation governing the sale of goods, prescribing the rights and duties of buyers and sellers.

Competition Bureau

A governmental agency responsible for enforcing laws to ensure fair competition, preventing monopolies, and promoting consumer interests.

Law Enforcement

The activity of ensuring compliance with the laws of a jurisdiction, typically conducted by police and other agencies.