Which statement is true of a general partnership?
A) The liability of each partner is limited to his or her own acts and omissions.
B) The business pays a standard corporate income tax.
C) The partnership acts like a corporation, selling stock on a stock exchange.
D) Some partners contribute only an investment but do not have any management responsibility or liability.
E) Two or more partners are responsible for the business and share profits, liabilities, and management responsibilities.
Answer: E
Explanation: E) In a general partnership, partners share profits, liabilities, and responsibilities but need not be equal on all counts.
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Indicate whether the statement is true or false.
A financial institution that provides for the accumulation or administration of the funds that will be used to pay pension benefits is called a
A) trust fund. B) mutual fund. C) funding instrument. D) funding agency.