1. A general partner:
a. Has a maximum loss equal to his or her equity investment.
b. Faces double taxation whereas a limited partner does not.
c. Is personally responsible for all the partnership debts.
d. Receives a salary in lieu of a portion of the profits.
e. Has no say over a firm's daily operations.
2. Which one of the following statements is correct?
a. Income from both sole proprietorships and partnerships is taxed as individual income.
b. A general partnership is legally the same as a corporation.
c. Only firms organized as sole proprietorships have limited lives.
d. All business organizations have by laws.
e. Partnerships are the most complicated type of business to form.