Which of the following is a characteristic of general partnerships?(1 point)

Responses

The partnership has limited life.
The partnership has limited life.

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

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

Each partner has different rights when representing the partnership.

1 answer

The correct characteristic of general partnerships from the provided options is:

The partnership has limited life.

In a general partnership, the partnership typically ceases to exist if one partner leaves or passes away, which makes it have a limited life.

  • The statement "One person is the owner of a general partnership" is incorrect, as a general partnership consists of two or more partners.
  • The statement "The partners have limited liability" is also incorrect; partners in a general partnership have unlimited liability, meaning they can be held personally responsible for the debts of the partnership.
  • The statement "Each partner has different rights when representing the partnership" is not typically a characteristic of general partnerships, as usually, each partner has equal rights in representing the partnership unless otherwise agreed.

Thus, the best option to choose is that the partnership has a limited life.