In a limited partnership, there is at least one general partner who manages the business and is personally liable for debts, and at least one limited partner who contributes capital and shares in profits but does not manage the business and has limited liability.

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Partnerships

Question 7

Multiple Choice

Partnerships:

A) Must register in the state in which they are formed if they are general partnerships.
B) Are classified as limited partnerships when they have at least one general partner and at least one limited partner.
C) Are taxed at the partnership level and then at the partners' level.
D) Income is taxed to the partners when the partnership distributes cash to its partners.

Correct Answer: