Betty owns Bicycle Fish, holding ownership as a general partner with Peggy. Its been a...
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Accounting
Betty owns Bicycle Fish, holding ownership as a general partner with Peggy. Its been a tough year. First, Bert has sued Bicycle Fish for breach of contract. Second, Betty had to reinvest profits into the business, and she received no distribution that year. What are the consequences of these two things for the partnership (as distinct from the partners)?
Select one:
a. No contractual liability; no tax liability for profits
b. No contractual liability; tax liability for profits
c. Contractual liability; no tax liability for profits
d. Contractual liability; tax liability for profits
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