Which of the following statements is correct with respect to partnerships?
A)At least one of the partners must be an individual.
B)Limited partners cannot participate in the management of the partnership.
C)Partnerships are not required to have an expectation of profit.
D)The use of the partnership form of business will allow the partners to pay higher salaries to family members.

Question

Quizplus · Accepted Answer

Limited partners are not allowed to participate in the management of the partnership. The other statements are incorrect - partnerships can have all partners be entities, partnerships require an expectation of profit, and the use of the partnership form of business does not automatically allow for higher salaries to family members.

Which of the Following Statements Is Correct with Respect to Partnerships