Which of the Following Is False Regarding the Treatment of a Partnership

question 1

Multiple Choice

Which of the following is false regarding the treatment of a partnership as a legal entity?

• A) A partnership is often considered a legal entity when it is sued or being sued.
• B) State law determines whether a partnership can or cannot be named in litigation.
• C) Title to property can be put in the partnership name.
• D) Every partner is considered an agent of the partnership, but not every partner has a fiduciary duty with all other partners.
• E) Under the doctrine of marshaling assets, partnership assets are arranged in a certain order to pay any outstanding debts.

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Definitions:

Married Person

A tax filing status for individuals who are legally married, affecting tax brackets, allowances, and potential deductions.

Tax Liability

The total amount of tax owed to a taxing authority, such as the IRS, based on taxable income and tax rate.

Personal and Dependency

Terms related to exemptions that can be claimed on tax returns for oneself and for dependents, affecting taxable income.

Exemption

Deductions allowed by law to reduce taxable income based on the taxpayer and dependents.