In a general partnership,(1 point)

Responses

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

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

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

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

1 answer

In a general partnership, the correct response is: partners usually draw up legal papers called articles of partnership.

This document outlines the terms and conditions of the partnership, including the roles and responsibilities of each partner, how profits and losses are shared, and what happens if a partner wants to leave the partnership.

The other statements are not accurate regarding general partnerships:

  • The business does not necessarily continue if one partner dies unless there are specific provisions in place.
  • Partners are personally liable for the debts of the partnership beyond their investment.
  • Partnerships do not issue stock; that would apply to corporations. Partnerships may face different tax obligations but do not pay taxes on stock issuance.