Which of the Following Is False Regarding a Partnership

question 52

Multiple Choice

Which of the following is false regarding a partnership?

• A) It is easy to create.
• B) Income of the business is personal income.
• C) Business losses can be deducted from taxes.
• D) Each partner is considered an agent of the partnership.
• E) In most cases partners do not have personal liability for losses.

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Definitions:

Service To Customer

Activities and benefits provided by a business to its customers, aimed at satisfying their needs and expectations.

Accounting Equation

The foundational principle of accounting expressing that assets equal the sum of liabilities and shareholder's equity.

Purchased Equipment

Fixed assets acquired by a company for use in the production or supply of goods and services, not for resale.

Accounting Equation

The fundamental equation of accounting, represented as Assets = Liabilities + Equity, serving as the foundation for double-entry bookkeeping.