In terms of its treatment of income, expenses, and taxes, a general partnership is essentially a sole proprietorship consisting of more than one person so each partner pays taxes and receives income based on their proportionate interest in the partnership.

Question

In terms of its treatment of income, expenses, and taxes, a general partnership is essentially a sole proprietorship consisting of more than one person so each partner pays taxes and receives income based on their proportionate interest in the partnership.

Quizplus · Accepted Answer

In a general partnership, the business itself does not pay income taxes. Instead, profits and losses are passed through to the partners, who report their share of the business income or losses on their personal tax returns, similar to a sole proprietorship.

In Terms of Its Treatment of Income, Expenses, and Taxes