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 as they dissolve upon the death, retirement, or bankruptcy of one of the partners unless the partnership agreement provides for a continuation. Option A is incorrect as not all partnership firms are public firms, some are private. Option C is incorrect as the partners have unlimited liabilities for the partnership's debts. Option D is incorrect as the partners can incur losses beyond their invested amount.

Which of the Following Is TRUE of a Partnership