Which Statement Is TRUE About Partnerships

question 140

Multiple Choice

Which statement is TRUE about partnerships?

• A)A partnership is a taxpaying entity.
• B)General partnerships have mutual agency and limited liability.
• C)Individuals,corporations,partnerships,or other types of entities can be partners.
• D)A written partnership contract must exist.

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Definitions:

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a specified person or entity.

Issued

Released or distributed officially by an authority, such as documents, currency, or rulings.

Bank Clears

The process by which a bank processes transactions and settles payments between parties.

Negotiability

The quality of a financial instrument that allows it to be transferred or assigned from one party to another in exchange for value.