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With regard to taxation of partnerships, which of the following statements is correct?

Each partner is taxed on his / her share of the partnerships profits.

Which of the following is necessary for starting a sole proprietorship?

No specific legal documents required

Which business forms incur "unlimited personal liability" for all owners and are viewed as an "extension" of the owner(s)?

Sole Proprietorships and General Partnerships

All business forms require

filing tax returns with the IRS.

The simplest form of business owned and operated by more than one person is called a

general partnership

Unless specified in the charter, a sole proprietorship has a

legal life limited to the life of its owner

By law, the minimum capital requirements for beginning a sole proprietorship are

nonexistant generally.

A voluntary association of two or more people acting as co-owners of a business is known as a

partnership

The partner who can lose only what he or she has invested in a business is the

sole proprietor

Which of the following is the most popular form of business based on the number of businesses in the U.S. ?

sole proprietorship