TRUE/FALSE

1. There are only four legal structures to form and operate a business. a. True b. False 2.

In a general partnership, each partner is individually liable to creditors for debts incurred by the partnership, to the extent of the partnership, to the extent of the partners capital balance a. True b. False

3. A partnership is a legal entity separate from its owners. a. True b. False

4. A partnership is subject to federal income taxes. a. True b. False

5. a disadvantage of partnership is the mutual agency of all partners . a. True b. False