Which of the following statements is true of a general partnership? A. A general partnership is dissolved any time there is a change in the partners. B. A general partnership must have at least one controlling partner. C. A dissolution does not necessarily destroy the business of a partnership. D. Unlike proprietorships, partnerships are taxable entities. E. All partners in a general partnership have only limited liability for their organization's debts.

Question

Business

Jayson Clements

26 June, 07:00

Which of the following statements is true of a general partnership? A. A general partnership is dissolved any time there is a change in the partners. B. A general partnership must have at least one controlling partner. C. A dissolution does not necessarily destroy the business of a partnership. D. Unlike proprietorships, partnerships are taxable entities. E. All partners in a general partnership have only limited liability for their organization's debts.

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Answers (1)

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Giuliana Decker · Answer 1

The correct answer is letter "A": A general partnership is dissolved any time there is a change in the partners.

Explanation:

General partnerships take place when two or more parties come together to establish business activities. All the parties are equally liable for the organization's obligations. In front of a change in the parties - add or remove, there is a legal dissolution of the partnership. The retirement or pass-away of one of the members of the partnership or the introduction of a new member to the board are common causes of the dissolution of a general partnership.