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.

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Definitions:

Installation Costs

Expenses associated with setting up or fitting equipment, machinery, or systems for use, including labor and materials.

Purchase Price

The amount of money paid to buy an asset, security, or other item of value.

Capital Expenditures

Investments in physical assets like equipment, buildings, and property to enhance or acquire new business operations.

Utility

An economic term for the total satisfaction received from consuming a good or service.