Answer the following statements true (T) or false (F)

1. Sole Proprietorships, partnerships and limited liability partnerships are considered pass through forms of organizations because the income passes through to the owners and is taxed at the owner's individual tax rate.
2. To reduce the burden on small firms, the government established a 25 percent deduction of qualified business income from pass through businesses.
3. There is unlimited liability in a general partnership.
4. A limited partnership limits the profits partners may receive.
5. In terms of revenues and profits, the corporation is by far the most important form of business organization in the United States.


1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. TRUE

Business

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