General partners
I.Are liable for all debts of the partnership.
II.Are taxed on distributions received from the partnership.

Question

General partners
I.Are liable for all debts of the partnership.
II.Are taxed on distributions received from the partnership.
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Quizplus · Accepted Answer

General partners are personally liable for all of the partnership's debts, which means that their personal assets can be used to pay off the partnership's creditors. General partners are also not considered employees of the partnership, so they are not taxed on distributions received from the partnership. Instead, they are subject to self-employment tax on their share of the partnership's income. Therefore, statement I is correct and statement II is incorrect.

General Partners I.Are Liable for All Debts of the Partnership