Which One of the Following Is Not True About Partnerships

question 58

Multiple Choice

Which one of the following is not true about partnerships?

• A)There must be two or more owners.
• B)General partners assume more risk of legal liability than limited partners.
• C)An LLC limits certain liability risks.
• D)A partnership is taxed like a corporation.
• E)All of the above are true.

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Definitions:

Activity Cost Pool

A category in activity-based costing that aggregates costs incurred from a specific activity, facilitating the assignment of those costs to products or services based on their use of the activity.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the amount of resources they consume.

Unit Product Cost

The total cost (both direct and indirect) to produce a single unit of product, typically including materials, labor, and overhead.

Traditional Costing

An accounting method that assigns overhead costs to products based on a predetermined rate, often not reflecting actual resource usage.