Which of the following is true of a general partnership?
A)Each partner has all the privileges and risks of ownership.
B)The income of a general partnership is double-taxed.
C)Each partner's liability is limited to the capital contributed by him.
D)When a general partner contributes a particular asset to the firm, he is considered the sole owner of the asset.

Question

Quizplus · Accepted Answer

In a general partnership, each partner has all the privileges and risks of ownership, including unlimited personal liability for the partnership's debts and obligations. The income of a general partnership is not double-taxed, but rather passes through to the partners and is taxed at their individual tax rates. The liability of each partner is not limited to the capital contributed by him, as each partner is personally liable for the partnership's debts and obligations. When a general partner contributes a particular asset to the firm, it becomes partnership property and is not considered the sole owner's asset.

Which of the Following Is True of a General Partnership