Which of the following statements regarding partnerships is true?
A)Partnerships have two owners.
B)The partnership ends when a new partner is added.
C)The partnership is responsible for its own taxes.
D)The partnership is a separate legal entity from its owners.

Question

Quizplus · Accepted Answer

In a partnership, the addition of a new partner typically requires the dissolution of the existing partnership agreement and the formation of a new one, effectively ending the original partnership.

Which of the Following Statements Regarding Partnerships Is True