Which of the Following Is a False Statement Regarding a Partnership

question 1

Multiple Choice

Which of the following is a false statement regarding a partnership?

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

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Definitions:

Enforceable

Capable of being imposed or complied with; in legal context, describes a contract or provision that can be legally executed or acted upon.

Void Contract

A contract that lacks legal validity and enforceability from the outset, meaning it has no legal effect and cannot be enforced by either party.

Infant

A very young child, especially one newly or recently born.

Illegal

Illegal refers to actions or activities that are prohibited by law or statute.