When One Joins an Existing Partnership, Care Must Be Taken

question 47

True/False

When one joins an existing partnership, care must be taken to examine the records of the partnership as any new partner automatically becomes jointly and severally liable for the existing partnership debts along with the existing partners.

---

Definitions:

Progressive Tax

A tax system where the tax rate increases as the taxable amount or income increases, placing a higher relative burden on wealthier individuals.

Regressive Tax

A tax system designed so that the rate of tax reduces as the taxable income rises.

Consumer Groups

Organizations that advocate for the rights and interests of consumers by providing education, policy advocacy, and products or services testing.

Sales Tax

A tax imposed by a government on sales of goods and services, collected by the retailer and passed on to the government.