Which of the following is true of a partnership? A : A partnership must have more than one owner. B : In the United States, partnerships produce five times the revenue of corporations. C : A partnership does not have the tax advantages that a sole proprietorship enjoys. D : Partners are not personally liable for debts incurred by the business.

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Business

30 December, 08:21

Which of the following is true of a partnership? A : A partnership must have more than one owner. B : In the United States, partnerships produce five times the revenue of corporations. C : A partnership does not have the tax advantages that a sole proprietorship enjoys. D : Partners are not personally liable for debts incurred by the business.

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Jakob Wu · Answer 1

Answer: Option A

Explanation: A partnership is an agreement in which tow or more individuals or firms combine their resources to work for the mutual interest. An entity having single individual as an owner is called a sole proprietorship and not a partnership.

Thus, it is must that the ownership of the entity remain in the hands of two or more individuals to be termed as partnership.

Therefore, we can conclude that the correct option is A.