Which of the Following Statements Regarding Partnerships Is True

question 23

Multiple Choice

Which of the following statements regarding partnerships is true?

• A)Partnerships must register with the federal government.
• B)Partnerships pay taxes to the IRS.
• C)Partners must register with the state government.
• D)Partners must abide by the separate entity concept and keep their personal assets separate from the partnership assets.

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Definitions:

Long-Run Profitability

The ability of a firm to generate a consistent profit over an extended period of time.

Brand Names

Names given to a product or service by a company to distinguish it from competitors, often associated with a perceived quality or reputation.

Welfare-Maximizing Output

The level of production in an economy that leads to the highest possible welfare, balancing efficiency and equity among consumers and producers.

Brand Name

The unique name given to a product or service by its maker to distinguish it from competitors and build recognition and loyalty.