Which of the Following Is Correct with Respect to Partnership

question 122

Multiple Choice

Which of the following is correct with respect to partnership?

• A) Partnership is a separate legal entity.
• B) A partnership can be made up of only limited partners.
• C) Partners are not agents for each other.
• D) General partners have unlimited liability.
• E) General partners have limited liability.

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Definitions:

Bankruptcy Filing

The legal process by which individuals or businesses declare their inability to pay their debts, seeking relief through the restructuring of debts or the liquidation of assets.

Legal Requirements

Regulations or obligations dictated by law that must be adhered to by individuals, organizations, or businesses.

Taxed

The imposition of compulsory levies on individuals or entities by governments in order to finance government activities.

Common Form

A widespread or standard format or structure that is frequently used for certain documents or procedures.