Answer the following statement(s) true (T) or false (F)
1. Sole proprietorships are similar to general partnerships in that the owners of each report the profits or losses of the business on his or her own tax return.
2. In order to qualify as a partnership, the partnership must be owned and operated by at least three different people.
3. All general partners have unlimited liability.
4. In a limited partnership all of the partners are called limited partner, and all of the partners have special tax advantages and protection from liability.
5. The chief distinction of a master limited partnership (MLP) is that it has at least one limited partner who has been certified to be a master at operating a limited partnership.
1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. FALSE
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A department should be discontinued if it has
a. a negative direct operating margin. b. consistent net sales. c. high direct operating expenses. d. a negative operating income.
Which of the following accounts would appear on an adjusted trial balance but probably would not appear on a trial balance?
A) Supplies Expense B) Accounts Payable C) Service Revenue D) Cash
The statement, “I would never vote for that guy. Just look at his bad haircut!” is an example of which common fallacy of logic and reason?
a. non sequitur b. ad hominem c. red herring d. slippery slope
Abnormal spoilage is always accounted for on an equivalent unit basis
Indicate whether the statement is true or false