Accounting Quizzes Financial Accounting Quiz MCQs

Question:
Which of the following is true about a partnership?

Option A):
All partners are personally liable for the debts of the business.
Option B):
All partners have invested an equal amount of capital.
Option C):
A partnership requires at least three people.
Option D):
Partnerships do not get favourable tax treatment compared to corporations.

Correct Answer is Option A):
All partners are personally liable for the debts of the business.