Which of the Following Statements Concerning Partnerships Is False

question 51

Multiple Choice

Which of the following statements concerning partnerships is false?

• A) A properly-drafted partnership agreement is crucial.
• B) A general partner's basis in a partnership includes his share of partnership debt.
• C) Limited partnerships must have at least one general partner.
• D) A partner is taxed annually on only that portion of a partnership's taxable income that is actually distributed.

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Definitions:

Life Insurance

A contract providing payment to designated beneficiaries upon the insured person’s death, offering financial protection against the loss of income.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured or reimburses them for expenses from illnesses or injuries.

Workers' Compensation Insurance

Insurance that provides medical benefits and wage replacement to employees injured on the job.

FUTA

This Act enforces a payroll tax on enterprises to finance state labor agencies, known as the Federal Unemployment Tax Act.