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All of the following statements are true regarding partnerships except ________.
- a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits
- b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partners
- c)A partnership balance sheet is much like that of a proprietorship
- d)The death of a partner dissolves the partnership and all assets must be liquidated
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
All of the following statements are true regarding partnerships except...
The correct answer is D) The death of a partner dissolves the partnership and all assets must be liquidated.
Explanation:
"The death of a partner dissolves the partnership and all assets must be liquidated." This statement is not always true regarding partnerships. While the death of a partner can indeed lead to the dissolution of a partnership, it is not necessarily the case that all assets must be liquidated. The handling of a partner's death largely depends on the partnership agreement and the decisions made by the remaining partners.
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Community Answer
All of the following statements are true regarding partnerships except...
Partnerships
Partnerships are a type of business organization where two or more people work together to run a business. In a partnership, the partners share the profits and losses of the business.
True Statements about Partnerships
There are several true statements about partnerships:
- There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits.
- If the partnership agreement does not specify otherwise, profits will be shared equally by the partners.
- A partnership balance sheet is much like that of a proprietorship.
False Statement about Partnerships
The false statement about partnerships is:
- The death of a partner dissolves the partnership and all assets must be liquidated.
Explanation
The death of a partner does not necessarily dissolve the partnership. The partnership agreement should specify what will happen in the event of a partner's death. Some partnerships may continue with the remaining partners, while others may dissolve and distribute assets to the deceased partner's heirs or estate.
Conclusion
Partnerships are a popular business organization that involves two or more people working together to run a business. Partnerships have several true statements, including that there is no partnership income tax, profits will be shared equally if not specified otherwise, and a partnership balance sheet is similar to that of a proprietorship. However, the false statement is that the death of a partner dissolves the partnership and all assets must be liquidated.
Partnerships are a type of business organization where two or more people work together to run a business. In a partnership, the partners share the profits and losses of the business.
True Statements about Partnerships
There are several true statements about partnerships:
- There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits.
- If the partnership agreement does not specify otherwise, profits will be shared equally by the partners.
- A partnership balance sheet is much like that of a proprietorship.
False Statement about Partnerships
The false statement about partnerships is:
- The death of a partner dissolves the partnership and all assets must be liquidated.
Explanation
The death of a partner does not necessarily dissolve the partnership. The partnership agreement should specify what will happen in the event of a partner's death. Some partnerships may continue with the remaining partners, while others may dissolve and distribute assets to the deceased partner's heirs or estate.
Conclusion
Partnerships are a popular business organization that involves two or more people working together to run a business. Partnerships have several true statements, including that there is no partnership income tax, profits will be shared equally if not specified otherwise, and a partnership balance sheet is similar to that of a proprietorship. However, the false statement is that the death of a partner dissolves the partnership and all assets must be liquidated.
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All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer?
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All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer?.
All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer?.
Solutions for All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice All of the following statements are true regarding partnerships except ________.a)There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits b)If the partnership agreement does not specify otherwise, profits will be shared equally by the partnersc)A partnership balance sheet is much like that of a proprietorshipd)The death of a partner dissolves the partnership and all assets must be liquidatedCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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