TRUE OR FALSE FOR EACH STATEMENT

1.To form a partnership the partners are required to have a partnership agreement.

2.A partnership is a legal entity that can sue and be sued.

3.Each partner may be required to pay partnership creditors from their personal assets.

4.Each partner has an equal vote, regardless of the relative size of his or her capital contribution, unless the partners agree otherwise.

5.A partnership is a pass-through tax entity meaning profits are taxed to the individual partners.

6.Devoting time, energy, and skill to partnership business is a partner's duty and is not a compensable service.

7.Every partner is entitled to use partnership property.

8.A simple majority rule controls decisions regarding the ordinary course of the partnership business.

9.Partners always share profit and losses equally unless they agree otherwise.

10.A partnership is a tax paying entity whose income is taxed to the partnership.

11.The partnership, and each partner, are all liable for the contractual obligations, and the negligent acts of a partner ( if those acts were committed within the ordinary course of the partnership's business).