Which of the following statements regarding partnerships is true?
A)Partnerships must register with the federal government.
B)Partnerships pay taxes to the IRS.
C)Partners must register with the state government.
D)Partners must abide by the separate entity concept and keep their personal assets separate from the partnership assets.

Question

Quizplus · Accepted Answer

In a partnership, partners must keep their personal assets separate from the partnership assets to maintain the separate entity concept, which is important for legal and financial clarity.

Which of the Following Statements Regarding Partnerships Is True