Chapter 14
According to the Internal Revenue Code, partnership income
Flows through to the individual tax returns of the individual partners
A tax advantage of partnerships over the corporate business organizational form is
-A partner's share of partnership operating losses can be used to offset income on the partner's individual tax return -The avoidance of double taxation
The Uniform Partnership Act
-Establishes uniform standards for many partnership characteristics -Provides a legal definition of a partnership -Has been adopted by all states in some form
Which of the following is not a reason for forming a partnership as opposed to a corporation for a new business?
Partnership income typically flows tax-free to the partners
The legal term stating that each partner possesses the right to incur liabilities on behalf of the partnership in the normal course of business is ____ _____
mutual agency