Which of the following statements regarding a partnership is true?

Question

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Partners in a partnership have personal liability much like that of sole proprietors, in the sense that partners and sole proprietors have personal liability for business debts and other legal obligations of the business. Option A is false - a partnership is a voluntary association. Option B is also false - although a written partnership agreement is recommended, a verbal agreement can also establish a partnership. Option C is false as well - a partnership is not a separate tax-paying entity, and income or losses are reported on the partners' individual tax returns. Option E is false - in a general partnership, all partners have unlimited liability.

Which of the Following Statements Regarding a Partnership Is True