Which of the following is a TRUE statement about the characteristics of partnerships?
A)In a limited liability partnership, all partners have limited liability for the partnership's debts.
B)General partnerships have mutual agency and limited liability for the partnership's debts.
C)Income and losses of the partnership "flow through" to the partners.
D)The partnership agreement must be in writing.

Question

Quizplus · Accepted Answer

In a partnership, income and losses are passed through to the partners, who report them on their personal tax returns.

Which of the Following Is a TRUE Statement About the Characteristics