Which of the following is true about a partnership —

CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
Which of the following is true about a partnership —
(A) All partners invest an equal amount of capital in the partnership's business
(B) All partners are personally liable for the debts of the Partnership business
(C) Partnerships get favourable tax treatment compared to corporations
(D) A partnership requires at least three persons.

Answer & Explanation:

Correct Answer: Option (B)

Correct answer: (B) All partners are personally liable for the debts of the Partnership business.

Topics: Fundamentals of Accounting and Auditing

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