Business and Labor Unit Test

Question

3 of 183 of 18 Items
Question
Which of the following is a characteristic of general partnerships?(1 point)
Responses

The partners have limited liability.
The partners have limited liability.

One person is the owner of a general partnership.
One person is the owner of a general partnership.

Each partner has different rights when representing the partnership.
Each partner has different rights when representing the partnership.

The partnership has limited life.

Answer 1

The characteristic of general partnerships among the given options is:

The partnership has limited life.

In a general partnership, the partnership can be dissolved if one of the partners leaves or passes away, implying that it has a limited life.

The other options are incorrect because:

• Partners in a general partnership typically have unlimited liability, not limited liability.
• A general partnership consists of two or more owners (partners), not just one person.
• In a general partnership, each partner usually has equal rights in representing the partnership unless otherwise agreed upon in a partnership agreement.