Which of the following is TRUE of a general partnership?
A) Each partner has all the privileges and risks of ownership.
B) The income of a general partnership is subject to double taxation.
C) Each partner's liability is limited to their contributed capital.
D) When a general partner contributes a particular asset to the firm, he or she is considered the sole owner of the asset.

Question

Quizplus · Accepted Answer

In a general partnership, each partner has unlimited liability and is responsible for all the privileges and risks of ownership. This means that each partner is personally liable for the debts and obligations of the partnership, and their personal assets can be used to satisfy these obligations. Additionally, partners share in the profits and losses of the partnership.

Which of the Following Is TRUE of a General Partnership