Which of the Following Is a Characteristic of a Partnership

question 145

Multiple Choice

Which of the following is a characteristic of a partnership?

• A) Partnerships pay corporate income taxes.
• B) Partnerships are listed on a stock exchange.
• C) Partnerships are organized as corporations.
• D) Partners have co-ownership of the partnership's assets.

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Definitions:

Financial Statements

Documents outlining the financial activities and condition of a business, organization, or individual, typically including the balance sheet, income statement, and cash flow statement.

Asset Revaluation

The process of adjusting the book value of a company's assets to reflect their current fair market values.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Surplus

The amount by which revenue exceeds expenses in a given period, indicating a positive financial state.