Which of the following is not a characteristic of a partnership?
A)Each general partner has unlimited liability for the debts of the partnership.
B)If one partner dies or leaves the partnership, the existing partnership is terminated.
C)The existing partnership agreement is dissolved and a new agreement is formed when a new partner joins the partnership.
D)The partnership income is subject to a federal income tax that is levied on the business but not on the partners.

Question

Quizplus · Accepted Answer

Partnership income is not subject to a federal income tax that is levied on the business, but rather it is passed through to the partners and taxed on their personal income tax returns. Therefore, D is the characteristic that does not apply to a partnership.

Which of the Following Is Not a Characteristic of a Partnership