In a general partnership,(1 point)

Question

Responses

partners must pay business taxes on stock they issue.
partners must pay business taxes on stock they issue.

the business continues even if one partner dies.
the business continues even if one partner dies.

partners usually draw up legal papers called articles of partnership.
partners usually draw up legal papers called articles of partnership.

partners are only liable for the business's debt up to the amount of their investment.

Answer 1

In a general partnership, the statement that is generally accurate is:

Partners usually draw up legal papers called articles of partnership.

The other statements are incorrect for the following reasons:

• Partners in a general partnership typically do not issue stock, and business taxes are usually paid at the personal level based on the income the partners earn from the business.
• The business does not continue if one partner dies; it usually dissolves unless otherwise specified in the partnership agreement.
• Partners in a general partnership are personally liable for the debts of the business, meaning they can be held responsible beyond their initial investment.