Which of the following statements about a partnership is NOT true?
A)Partners must keep their capital separate for tax purposes.
B)It can be difficult to sell a share in a partnership.
C)Partners are unable to contract with the firm.
D)Partnerships can be cheap and quick to establish.

Question

Quizplus · Accepted Answer

Partners in a partnership are not required to keep their capital separate for tax purposes. In fact, the income from the partnership is typically passed through to the individual partners, who then report it on their personal tax returns. This is different from corporations, where the entity itself is taxed separately from its owners.

Which of the Following Statements About a Partnership Is NOT