Question

Which of the following is correct? a. A partnership is a reporting entity but not a taxable entity. b. A partnership is a taxable entity and a reporting entity. c. An individual is a reporting entity but not a taxable entity. d. A corporation is a reporting entity but not a taxable entity.

Answer 1

Answer:

Option b

Explanation:

A partnership in business, is a business relationship and every business relationship is required to be accountable for its affairs, reporting and taxable because they engage in business activity as any business activity is meant to reporting to government on its returns which is a portion of what ever business activity had been carried out through tax remissions. So yes a partnership is reporting and taxable.