Which of the Following Statements About the Taxation of Partnerships

Multiple Choice

Which of the following statements about the taxation of partnerships is MOST accurate?

A) Partnerships are limited in taxes depending on number of partners.
B) Both the partnership and the individuals are taxed for any profits earned.
C) Partnerships file tax returns but pass profits and losses on to partners who report them on their tax returns.
D) Partnerships use corporate tax rates in filing returns.