Which One of the Following Applies to a General Partnership

question 44

Multiple Choice

Which one of the following applies to a general partnership?

• A)The firm's operations must be controlled by a single partner.
• B)Any one of the partners can be held solely liable for all of the partnership's debt.
• C)The profits of the firm are taxed as a separate entity.
• D)Each partner's liability for the firm's debts is limited to each partner's investment in the firm.
• E)The profits of a general partnership are taxed the same as those of a corporation.

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Definitions:

Similar Investments

Investments that share comparable characteristics, risk profiles, or potential returns, facilitating the comparison and portfolio diversification.

Annual Dividend

Annual dividend refers to the total dividend payment a shareholder receives per share of stock owned in a company over the course of a year.

Rate of Return

The outcome, whether gainful or not, of an investment throughout an established period, expressed as a percentage of the investment's purchase cost.

Annual Dividend

A financial distribution made by a corporation to its shareholders, usually once or multiple times a year, from its earnings.