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roduct VoiceThread-HomeThe Truh by Ross Gay lP o jin psues ?https://edugenwileyplus.com/edugen/studentimainf.uni Weygandt, Accounting Principles, 12e Mark Rensing has prepared the following list of statements about partnerships. Identify each statement as true or false. 1. A partnership is an association of three or more persons to carry on as co-owners of a business for profit. 2. The legal requirements for forming a partnership can be quite burdensome 3. A partnership is not an entity for financial reporting purposes 4. The net income of a partnership is taxed as a separate entity. 5. The act of any partner is binding on all other partners, even when partners perform business acts beyond the scope of their authority 6. Each partner is personally and individually liable for all partnership liabilities. 7. When a partnership is dissolved, the assets legally revert to the original contributor 8. In a limited partnership, one or more partners have unlimited liability and one or more partners have limited liability for the debts of the firm. 9. Mutual agency is a major advantage of the partnership form of business here to search

Explanation / Answer

Answer

Statement no.

Answer

FALSE, it is an association of 2 or more persons.

FALSE, legal requirements are much less compared to corporation formation.

FALSE, partnership is required for financial reporting purpose

FALSE, net income of partnership is NOT taxed as a separate entity.

TRUE, act of 1 partner is binding on all partners.

TRUE, it’s a basic principal of partnership.

FALSE, assets don’t legally revert back to original contributor.

TRUE, some can have unlimited liability while other enjoy limited liability.

FALSE