Which of the following is true of a partnership?
A)All partnership firms are public firms.
B)Partnership firms have a limited life.
C)The owners of the partnership have limited liabilities for the partnership's debts.
D)The maximum loss an owner of a partnership can incur is the invested amount.

Question

Quizplus · Accepted Answer

Partnership firms have a limited life and automatically dissolve when one of the partners dies or withdraws from the partnership.

Answer: D 
 Partnerships do not have limited liability, which means that each partner is personally responsible for the debts and obligations of the partnership. The maximum loss an owner of a partnership can incur is their invested amount in the partnership.

Which of the Following Is True of a Partnership