Which of the Following Statements Regarding a Partnership Is True?
Which of the following statements regarding a partnership is true?
A) A partnership is an involuntary association.
B) To be valid, a partnership must have a written partnership agreement.
C) A partnership is a separate tax-paying entity for federal tax purposes.
D) Partners in a partnership have personal liability much like that of sole proprietors, in the sense that partners and sole proprietors have personal liability for business debts and other legal obligations of the business.
E) All of the partners in a partnership have limited liability.