Each partner in a partnership:
A)shares in a jointly held capital account.
B)pays his or her share of the partnership business profit tax.
C)has co-ownership of the assets of the partnership.
D)has limited liability for the debts of the business.

Question

Quizplus · Accepted Answer

Each partner has co-ownership of the assets of the partnership, meaning they have a shared interest in the assets and liabilities of the business. However, partners do not have limited liability for the debts of the business (answer D is incorrect). Partners also do not individually pay the partnership business profit tax (answer B is incorrect). Partners may have their own capital accounts, but they are not necessarily jointly held (answer A is incorrect).

Each Partner in a Partnership