A partnership does not pay taxes
The correct answer is True
Explanation : - Unlike corporations, partnerships are not treated as separate legal entity. Each member of a partnership is subject to income tax on the partner's distributive share of the partnership income. Thus a partnership does not pay income taxes as an entity.
A partnership is NOT recognized as a legal entity under civil law
The correct answer is false
Explanation : - A partnership is treated as a separate legal entity under civil law with the right to own property in its own name and to transact business free from the personal debts of its partners.
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