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 and loss distribution,the partners must share income and losses 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 is considered a separate entity for the purpose of holding assets, even though it is not separate for tax purposes.

Which of the Following Is Incorrect Regarding Partnerships