Which of the following type of organization is classified as a partnership, or

similar to a partnership, for tax purposes?

(I.) Limited Liability Company

(II.) Limited Liability Partnership

(III.) Subchapter S Corporation

A) II only.

B) II and III.

C) I and II.

D) I and III.

E) I, II, and III.

[QUESTION]

Which of the following statements is correct regarding the admission of a new

partner?

A) A new partner must purchase a partnership interest directly from the business.

B) The right of co-ownership in the business property can be transferred to a new

partner without the consent of other existing partners.

C) The right to participate in management of the business can be conveyed without

the consent of other existing partners.

D) The right to share in profits and losses can be sold to a new partner without the

consent of other existing partners.

E) A new partner always pays book value.

[QUESTION]

Withdrawals from the partnership accounts are typically not used

A) to record compensation for work performed in the business.

B) to reduce the partners' capital account balances at the end of an accounting

period.

C) to record interest earned on a partner’s capital balance.

D) to reduce the basic investment that has been made in the business.to record a
reward for ownership in the partnership.