Which of the Following Is True of Partnerships as Entities

question 29

Multiple Choice

Which of the following is true of partnerships as entities?

• A) Partnerships are taxable entities and pay income taxes.
• B) A partner can unilaterally dispose of partnership property under both RUPA and UPA.
• C) A partnership cannot be involuntarily thrust into a bankruptcy proceeding.
• D) A partnership may keep business records as if it were a separate entity.
• E) Under RUPA, a partnership does not have entity characteristics.

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Definitions:

Certificate of Authority

A document issued by a state government granting a company permission to do business in that state as a foreign (out-of-state) entity.

Charter

A charter is a legal document that establishes a corporation or municipality, outlining its rights, privileges, and operations.

Promoters of a Corporation

Individuals or entities involved in the creation and organization of a corporation, including raising capital and completing legal formalities before registration.

Formal Documents

Official papers that follow a specific format or standard, often used for legal, official, or ceremonial purposes.