Question
Mark Rensing has prepared these statements about partnerships. Identify each statement as true or false. 1. A partnership is an association of three or more
Mark Rensing has prepared these statements about partnerships. Identify each statement as true or false.
| 1. | A partnership is an association of three or more persons to carry on as co-owners of a business for profit. | select an option TrueFalse | ||
|---|---|---|---|---|
| 2. | The legal requirements for forming a partnership can be quite burdensome. | select an option TrueFalse | ||
| 3. | A partnership is not an entity for financial reporting purposes. | select an option TrueFalse | ||
| 4. | The net income of a partnership is taxed as a separate entity. | select an option TrueFalse | ||
| 5. | The act of any partner is binding on all other partners, even when partners perform business acts beyond the scope of their authority. | select an option TrueFalse | ||
| 6. | Each partner is personally and individually liable for all partnership liabilities. | select an option TrueFalse | ||
| 7. | When a partnership is dissolved, the assets legally revert to the original contributor. | select an option TrueFalse | ||
| 8. | In a limited partnership, one or more partners have unlimited liability and one or more partners have limited liability for the debts of the firm. | select an option TrueFalse | ||
| 9. | Mutual agency is a major advantage of the partnership form of business. | select an option |
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