A general partnership:

A Provides limited liability

B Involves two or more partners who share management and have unlimited personal liability

C Is taxed as a corporation

D Cannot have more than 2 partners

✓ Correct Answer: Option B

General partnership: all partners share management, profits/losses, and unlimited personal liability for partnership debts.

💡 Why is B) the correct answer?

The correct answer to the question "A general partnership:" is Option B: Involves two or more partners who share management and have unlimited personal liability.

The other options — A) Provides limited liability, C) Is taxed as a corporation, D) Cannot have more than 2 partners — are incorrect for this CPA Exam Prep question. As explained above: General partnership: all partners share management, profits/losses, and unlimited personal liability for partnership debts.

📚 About This CPA Exam Prep Practice Question

This 1-level CPA Exam Prep question from the Regulation (REG) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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A general partnership:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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