How are taxes paid in a partnership?
A) By each partner based on their individual profit.
B) By the business, with partners splitting remaining profit.
C) The partnership is taxed at a flat percentage.
D) As business income before expenses for each partner.
E) Each partner pays the same amount.
Answer: A
Explanation: Income tax is straightforward for partnerships. Profit is split between or among the owners based on whatever percentages they have agreed to. Each owner then treats his or her share as personal income.
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a. 6 b. 5 c. 4 d. 3
_____________ means that decision-making authority is delegated to lower-level managers and employees.
A. Uniformity of authority B. Decentralized authority C. Specification of authority D. Standardized authority