Which of the Following Is TRUE of a General Partnership

question 156

Multiple Choice

Which of the following is TRUE of a general partnership?

• A) Each partner has all the privileges and risks of ownership.
• B) The income of a general partnership is subject to double taxation.
• C) Each partner's liability is limited to their contributed capital.
• D) When a general partner contributes a particular asset to the firm, he or she is considered the sole owner of the asset.

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Definitions:

Out-of-Pocket Rule

A legal principle used to calculate damages based on the actual direct losses and costs incurred by a plaintiff.

Misrepresents

To provide false or misleading representations about something, often with the intention to deceive.

Damage Award

A damage award is the amount of money granted to a party in a lawsuit for compensation for loss, injury, or harm suffered as a result of another party's actions.

Specific Performance

A legal remedy requiring a party to perform a specific act, often the completion of a transaction as contractually agreed.