Partners of a partnership:

A) are not liable for all of the partnership's obligations.
B) are entitled to income of the partnership,which must be reported on their individual federal income tax returns.
C) are not permitted to deduct partnership losses on their individual federal income tax returns.
D) can create a partnership only by complying with a statute.

Partnership's Obligations

The legal and financial duties that a partnership owes to others, including partners, creditors, and the public.

Income

Money or goods received, especially on a regular basis, as a result of labor, investments, or business activities.

Federal Income Tax Returns

Documents filed with the IRS to report annual income, deductions, and applicable taxes owed or refunds due to taxpayers.