Podcast
Questions and Answers
Which feature of a partnership describes the idea that partners come together by their own choice?
Which feature of a partnership describes the idea that partners come together by their own choice?
- Voluntary Association (correct)
- Mutual Agency
- Taxable Entity
- Legal Entity
A partnership's assets are considered personal properties of the partners.
A partnership's assets are considered personal properties of the partners.
False (B)
What type of partnership is usually exempted from tax?
What type of partnership is usually exempted from tax?
general professional partnership
Under the feature of mutual agency, each partner is a fully authorized ______ of the partnership.
Under the feature of mutual agency, each partner is a fully authorized ______ of the partnership.
Match each feature of a partnership with its description:
Match each feature of a partnership with its description:
Which characteristic of a partnership allows it to conduct business in its own name?
Which characteristic of a partnership allows it to conduct business in its own name?
The income of an ordinary partnership is not taxable.
The income of an ordinary partnership is not taxable.
At what rate is the income of an ordinary partnership taxed (as mentioned in the context)?
At what rate is the income of an ordinary partnership taxed (as mentioned in the context)?
A partnership can be sued together with the partners by third parties when a partner commits a ______ act.
A partnership can be sued together with the partners by third parties when a partner commits a ______ act.
When do partnership assets cease to be considered personal properties of the partners?
When do partnership assets cease to be considered personal properties of the partners?
Partners do not have claim on partnership assets based on their capital accounts and share in partnership earnings.
Partners do not have claim on partnership assets based on their capital accounts and share in partnership earnings.
Which of the following best describes the 'Legal Entity' feature of a partnership?
Which of the following best describes the 'Legal Entity' feature of a partnership?
What professions are typically associated with a general professional partnership?
What professions are typically associated with a general professional partnership?
Acts of the partners within the scope of the partnership are ______ when transacting partnership business.
Acts of the partners within the scope of the partnership are ______ when transacting partnership business.
What does the feature 'Mutual Agency' in a partnership signify?
What does the feature 'Mutual Agency' in a partnership signify?
Individuals can be forced to join a partnership against their will.
Individuals can be forced to join a partnership against their will.
Partners in a partnership have a claim on all partnership assets based on what?
Partners in a partnership have a claim on all partnership assets based on what?
What is the primary criterion that defines a general professional partnership?
What is the primary criterion that defines a general professional partnership?
The income of an ordinary partnership is taxable like a ______.
The income of an ordinary partnership is taxable like a ______.
Match the feature of partnership with the correct implications or explanation:
Match the feature of partnership with the correct implications or explanation:
Flashcards
Voluntary Association
Voluntary Association
Individuals freely agree to join together and form a partnership.
Legal Entity
Legal Entity
A partnership has a separate juridical personality from its partners; it can acquire, sell, and transact in its own name.
Co-ownership of Property
Co-ownership of Property
Partnership assets are jointly owned by the partners; partners have a claim based on capital accounts and earnings.
Taxable Entity
Taxable Entity
Signup and view all the flashcards
Mutual Agency
Mutual Agency
Signup and view all the flashcards
General Professional Partnership
General Professional Partnership
Signup and view all the flashcards
Study Notes
Features of a Partnership
- Partnerships have several defining features that clarify their operation and nature.
- Voluntary Association: Partners freely agree to join and form a partnership.
- Legal Entity: A partnership possesses a separate juridical standing from its partners, enabling it to acquire, sell, dispose of property, incur obligations, and conduct business under its own name.
- Co-ownership of Property: Partnership assets are jointly owned by the partners.
- Assets invested in or acquired by the partnership lose their status as personal property and become jointly-held property.
- Partners can claim partnership assets based on their capital accounts and share in partnership earnings.
- Taxable Entity: Ordinary partnership income is taxable, similar to a corporation, at a rate of 30%.
- General professional partnerships formed to exercise common professions (accounting, law, medicine, engineering, etc.) are exempt from tax.
- Mutual Agency: Each partner is a fully authorized agent of the partnership.
- Actions taken by partners within the scope of the partnership are binding when transacting partnership business.
- The partnership can be sued jointly with the partners by third parties if a partner commits a wrongful act or breaches trust.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
