Which of the following statements best describes a partnership?
A)separate legal entity
B)single owner
C)most expensive to establish
D)owners are responsible for debt of the company

Question

Quizplus · Accepted Answer

In a partnership, the owners (or partners) are jointly and individually responsible for the debts and obligations of the company. Therefore, option D is the correct answer. Option A is false because a partnership is not a separate legal entity, unlike a corporation. Option B is false because a partnership has two or more owners. Option C is false because a partnership is generally less expensive to establish compared to a corporation.

Which of the Following Statements Best Describes a Partnership