Accounting ch 12
A written partnership agreement is also known as the articles of partnership
True
An S corporation is a corporation with 100 or fewer stockholders that can elect to be taxed as a partnership
True
If elected, an S corporation pays no corporate income tax.
True
In a general partnership, The partners have unlimited personal liability for the debts of the business
True
In a general partnership, if one partner cannot pay his or her part of the debts, the other partner or partners must pay it with their personal assets.
True
In a limited liability partnership, each partner is not personally liable for the malpractice or negligence committed by another partner.
True
Mutual agency means that any partner can legally bind the other partners and the partnership to Business contracts within the scope of the business' regular operations
True
The articles of partnership is a written contract between partners that specifies the name, location, and nature of the business; the duties of each partner; and the method of sharing profits and losses among the partners
True
The statement of partners' equity shows the changes in each partner's capital account for a specific period of time.
True
What results in a dissolution of a partnership?
Admission of a new partner.
In a partnership, mutual agency means that...
Any partner can bind the business to a contract within the scope of his regular business operations.
A partnership is a...
Business with two or more owners that is not organized as a corporation
What type of business organization pays business income taxes?
C corporations
A partnership is a business with two or more owners that is legally organized as a corporation
False
And as I receive from a partner as a contribution is recorded at its historical cost
False
In a general partnership, each partner has limited personal liability for the debts of the business.
False
In a partnership, When I partnered contributes a particular asset to the firm, he or she is considered to be the sole owner of the asset.
False
In a partnership, the income is taxed at the partnership level as well as the personal level of the owners.
False
The addition of a new partner to a firm does not dissolve the old partnership
False
The income of a limited liability company could not be taxed to the members as though they were partners.
False
In comparison to a corporation, the owners of a general partnership...
Have an unlimited personal liability for the dates of the business.
Limited liability company
Is a form of business organization that combines the advantages of both partnership and a corporation
What is a characteristic of a partnership?
Partners have coownership of the partnership's assets.
What is another characteristic of a partnership?
Partners have coownership of the partnership's assets.
What is true of a partnership?
Partnership firms have a limited life
What is another advantage of a partnership?
Partnerships are less expensive to organize than corporations.
What is specified in the articles of partnership?
Procedures for with drawl of assets by the partners.