A general partnership has which of the following characteristics?

• A. Ownership can be transferred without the consent of other partners.
• B. Only one partner is required to manage the business.
• C. All partners have unlimited liability for the debts of the business.
• D. Partners are taxed as a separate legal entity.

Answer: (C)

Verified step by step guidance

1. Understand the concept of a general partnership: A general partnership is a business structure where two or more individuals agree to share ownership, profits, and liabilities of the business.
2. Clarify the characteristic of ownership transfer: In a general partnership, ownership cannot typically be transferred without the consent of all partners, as the partnership agreement governs such decisions.
3. Examine the management structure: In a general partnership, all partners usually have the right to participate in the management of the business, unless otherwise agreed upon in the partnership agreement.
4. Discuss liability: All partners in a general partnership have unlimited liability, meaning they are personally responsible for the debts and obligations of the business.
5. Explain taxation: A general partnership is not taxed as a separate legal entity. Instead, profits and losses are passed through to the partners, who report them on their individual tax returns.