The Profits of a General Partnership

question 23

Multiple Choice

The profits of a general partnership:

• A) are not taxable to the individual partners
• B) pass through the business to the partners
• C) are not taxable unless the partnership has over $100,000 in net income
• D) cannot exist unless the partnership has a limited partner

---

Definitions:

Direct Labor

This refers to the wages and other costs for labor directly involved in the production of goods or the provision of services, not including indirect labor costs such as maintenance.

Differential Profit

The difference in profit between two alternative decisions or time periods.

Allocated Fixed Costs

Fixed costs that are assigned to a specific department, project, or segment of a business.

Discontinuing

The process of ending the production and sales of a product line, business segment, or an entire business.