A
A. has one owner
B. can issue stock
C. pays taxes on partnership income
D. can have more than one general partner
Concept Introduction:The business organization is referred to as an entity that is established to run a commercial business. The different form of business organization includes partnership, sole proprietorship, and company.
To choose:The correct option.
Answer to Problem 1MC
D. Can have more than one general partner.
Explanation of Solution
Explanation for the correct answer: A partnership is referred to as a form of business organization under which two or more than two persons join to run the legal business. The partners contribute property, services, and money in the business. A partnership has more than one general partner. Therefore, it is the correct answer.
Explanation for the incorrect answers:
A. has one owner: A partnership is formed to run a legal business by two or more than two persons. Each person in the partnership is the owner. A partnership has more than one owner. Therefore, it is an incorrect answer.
B. can issue stock: The partnership does not have a right to issue stock for raising capital. Partnership does not have securities to issue. Therefore, it is an incorrect answer.
C. pays taxes on partnership income: The partners are not liable to pay taxes on the partnership income. The partners are liable to pay personal tax. Therefore, it is an incorrect answer.
Want to see more full solutions like this?
Chapter 15 Solutions
Principles of Accounting Volume 1
Additional Business Textbook Solutions
Principles of Management
Cost Accounting (15th Edition)
Horngren's Accounting (12th Edition)
Managerial Accounting (4th Edition)
Financial Accounting (12th Edition) (What's New in Accounting)
Horngren's Accounting (11th Edition)
- A well written partnership agreement should include each of the following except ________. A. how to settle disputes B. the name of the partnership C. division of responsibilities D. Partners individual tax ratearrow_forwardWhat type of assets may a partner not contribute to a partnership? A. accounts receivable B. furniture C. equipment D. personal credit cardsarrow_forwardWhich of the following is a disadvantage of the partnership form of organization? A. limited life B. no taxation at the partnership level C. flexibility in business operations D. combining of financial resourcesarrow_forward
- Can a partnership assume liabilities as part of one of the partners contributions?arrow_forwardWhen a partnership is liquidated, any gains or losses realized by the sale of noncash assets are allocated to the partners based on their income sharing ratio. Why?arrow_forwardAny assets invested by a particular partner in a partnership ________. A. do not become a partnership asset but instead remain with the partner B. can be used only by the investing partner C. become the property of all the partners D. are the basis for all profit sharingarrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College