Which of the following is a true statement concerning a general partnership?
A) Partners are not responsible for the debts of the partnership.
B) The income of a partnership is taxed at the partners' income tax rate.
C) Partners generally do not manage the partnership.
D) Partnerships have unlimited lives similar to corporations.
E) Partnerships are taxed at the corporate level.

Question

Quizplus · Accepted Answer

In a general partnership, the income earned by the partnership is passed through to the partners and taxed at their individual income tax rates. This avoids the double taxation seen in corporations, where income is taxed at both the corporate level and again at the individual level when dividends are distributed.

Which of the Following Is a True Statement Concerning a General