Question

A limited partnership: Multiple Choice a. has an unlimited life. b. can opt to be taxed as a corporation. c. terminates at the death of any one limited partner. d. has at least one partner who has unlimited liability for all of the partnership's debts. e. consists solely of limited partners.

Answer 1

Answer:

The correct answer is letter "C": terminates at the death of any one limited partner.

Explanation:

A partnership is an entity that runs a company with two or more owners. They share the profits in proportion to their relationship benefit in percentage terms. There are two types of partnerships: general partnerships (unlimited liability) and limited partnerships (liability proportional to the contribution to the partnership).

When one of the partners is removed, retires, or deceases or even when a new partner will be added, the partnership dissolves and a new partnership is formed.