Which one of the following statements concerning a partnership is true?
A) Under a general partnership, only the key partner is personally liable for the business debts.
B) Limited partners in a limited partnership should be actively involved in management decisions.
C) Income from a limited partnership is taxed as corporate income.
D) A primary advantage of a partnership is the ease of transferring ownership.
E) A partnership terminates at the death of any partner.

Question

Quizplus · Accepted Answer

A partnership typically terminates at the death of any partner, unless there's an agreement in place among the partners that specifies otherwise. This characteristic distinguishes partnerships from corporations, where ownership can be transferred and the entity continues despite changes in ownership or management.

Which One of the Following Statements Concerning a Partnership Is