DO IT! 12.1 (LO 1) Indicate whether each of the following statements is true or false. If false, indicate how to correct the statement.

Analyze statements about partnership organization.

• ________1. Each partner is personally and individually liable for all partnership liabilities.

• ________2. If a partnership dissolves, each partner has a claim to the specific assets he/she contributed to the firm.

• ________3. In a limited partnership, all partners have limited liability.

• ________4. A major advantage of regular partnership is that it is simple and inexpensive to create and operate.

• ________5. Members of a limited liability company can take an active management role.