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:

Law of Effect

A principle in psychology that behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are not.

Premise

A premise is a previous statement or proposition from which another is inferred or follows as a conclusion.

Self-efficacy Theory

A psychological theory asserting that an individual’s belief in their own ability to succeed influences their motivation and performance in various settings.

Confidence

A feeling of self-assurance arising from one's appreciation of their own abilities or qualities.