Which of the following is (are)true about a general partnership?
I.Some of the partners have limited liability.
II.Some of the partners may not be involved in the day-to-day operations.
III.Some partners may receive a different percentage of the profits.

Question

Quizplus · Accepted Answer

In a general partnership, all partners have unlimited personal liability for the business's debts and obligations, so statement I is false. Statement II is true because not all partners may be actively involved in the day-to-day operations of the business. Statement III is also true because partners may agree to distribution of profits based on different percentages. Therefore, the only true statements are II and III, making choice C the correct answer.

Which of the Following Is (Are)true About a General Partnership