Which of the following is incorrect regarding partnerships?
A)Legally,there is no economic separation between a partnership and its owners.
B)A partnership is a voluntary association of individuals.
C)If the partnership agreement does not describe the method of income distribution,the partners must share income equally.
D)When individuals invest property in a partnership,they co-own the property with the partnership.

Question

Quizplus · Accepted Answer

In a partnership, when individuals invest property, the property becomes owned by the partnership as an entity, not co-owned by the individuals with the partnership. This is because the partnership itself, while not a separate legal entity from its owners for tax purposes, holds the property in the name of the partnership business.

Which of the Following Is Incorrect Regarding Partnerships