Question 23

Which one of the following is correct?

A. Partnerships have all the respective rights and privileges of a legal person. They are treated as a separate legal entity.

B. Income from both sole proprietorships and partnerships that is taxable will be passed-through to business owners and treated as individual income.

C. Only firms organized as sole proprietorships have limited lives.

D. All forms of business organizations have bylaws and articles of incorporation and are required to file with state government to legally document the presence of the business.