A type of partnership called a ________ acts much like a corporation and is traded on stock exchanges, but it is taxed like a partnership with profits passing through to the owners and taxed as the owner's personal income.
A) limited partnership
B) combined general partnership
C) cooperative partnership
D) master limited partnership

Question

Quizplus · Accepted Answer

The description given matches that of a master limited partnership (MLP). MLPs are traded on stock exchanges like corporations but are taxed like partnerships with profits passing directly through to the owners and taxed as personal income. Limited partnerships (A) and general partnerships (B) are not traded on stock exchanges and are taxed differently, while a cooperative partnership (C) is a specific type of partnership focused on achieving a common goal among its members, rather than generating profits.

A Type of Partnership Called a ________ Acts Much Like