Which one of the following statements is correct?
A) A general partnership is legally the same as a corporation.
B) Income from both sole proprietorships and partnerships that is taxable is treated as individual income.
C) Partnerships are the most complicated type of business to form.
D) All business organizations have bylaws.
E) Only firms organized as sole proprietorships have limited lives.

Question

Quizplus · Accepted Answer

Income from sole proprietorships and partnerships is treated as individual income and is therefore subject to individual income tax. The other statements are incorrect.

Which One of the Following Statements Is Correct