Which of the Following Statements Is True About Partnerships

question 50

Multiple Choice

Which of the following statements is true about partnerships?

• A)The formation of a partnership must be documented in writing.
• B)An LLC is generally treated as a partnership for tax law purposes.
• C)General partners have no liability for partnership obligations beyond their capital contributions.
• D)When Sue and Billy Bob invest in land together, they are considered to have formed a partnership.

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Definitions:

Family Enterprising

Businesses or economic efforts led by family units or managed with significant family involvement, often characterized by a distinctive culture and values.

Financial Mind-Set

An attitude or perspective that emphasizes the importance of financial outcomes in decision-making.

Operational Mind-Set

A way of thinking that focuses on the efficient execution of processes, tasks, and strategies.

Strategic Thinking

The process of planning for the future, analyzing patterns, and making decisions that will prepare an organization for long-term success.