Partnership is formed by persons for the sole purpose of exercising their profession, no part of the

income of which

is derived from engaging in any business.

a Joint venture

b. General professional partnership

c. Trading partnership

d. Joint accounts

• Answer: B

Statement 1: All partnerships are taxed in the same manner as corporation.

Statement 2: The income of a general commercial partnership is also subject Regular Corporate Income
Tax

whichever is applicable.

a Statements 1 & 2 are false

b. Statement 1 is true but statement 2 is false

c. Statement 1 is false but statement 2 is true

d. Statement 1 and 2 are true

• Answer: C

Statement 1: All partnerships are taxed in the same manner as corporation.

Statement 2: The income of a general commercial partnership is also subject Regular Corporate Income
Tax

whichever is applicable.

a Statements 1 & 2 are false

b. Statement 1 is true but statement 2 is false

c. Statement 1 is false but statement 2 is true

d. Statement 1 and 2 are true

• Answer: C

A general professional partnership is exempt from income tax, but is required to file an income tax
return

a. For statistical purposes.

b. Because the net income of the partnership will be traced into the income tax return of the partners.
c. Because all income earners are required to file income tax returns.

d. None of the above.

• Answer: B

. For purposes of taxation, partnership is

I. Classified into two major categories, partnership in trade and general professional partnership.

II. Partnership in trade is treated as corporate taxpayer.

III. General professional partnership is exempt from income tax

a. I, II and III

c. I and III only

b. I and II only

d. I only

• Answer: A

A taxable partnership may be subject to the following taxes:

I. Minimum corporate income tax

II. Regular corporate income tax

III. Improperly accumulated earnings tax.

a l, ll, and III c. I and III only

b. I and II only d. I only

• Answer: B