Which of the Following Statements Is True About Partnerships

question 50

Multiple Choice

Which of the following statements is true about partnerships?

• A)The formation of a partnership must be documented in writing.
• B)An LLC is generally treated as a partnership for tax law purposes.
• C)General partners have no liability for partnership obligations beyond their capital contributions.
• D)When Sue and Billy Bob invest in land together, they are considered to have formed a partnership.

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Definitions:

Compensatory Damages

Financial compensation awarded to plaintiffs in legal cases for the loss or injury they have suffered.

Sexual Harassment

Unwanted sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

Courts

The institutions responsible for interpreting and applying the law in legal cases.

Reverse-Discrimination Cases

Legal actions brought forward when an affirmative action or similar policy is argued to discriminate against majority groups.