Which of the following statements is NOT correct with respect to partnerships?
A)General partners are entitled to participate in the management of the company.
B)General partners are a separate legal entity from the business.
C)Unless the partnership agreement states otherwise, general partners are entitled to an equal share of the profits of the business.
D)General partners are jointly and severally liable for the debts of the company.

Question

Quizplus · Accepted Answer

General partners are not a separate legal entity from the business, meaning they are personally liable for the debts and obligations of the partnership. They are entitled to participate in the management of the company, entitled to an equal share of profits (unless otherwise stated in the partnership agreement), and are jointly and severally liable for the debts of the company.

Which of the Following Statements Is NOT Correct with Respect