Which of the Following Is Not a Characteristic of a Partnership

question 60

Multiple Choice

Which of the following is not a characteristic of a partnership?

• A)Must meet 80 percent control requirement for formation to be tax free
• B)Cash distributions to partners may be taxable
• C)Loss is only recognized on liquidating distributions
• D)General partners' salaries are subject to FICA taxes.

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Definitions:

Program Champion

An individual who passionately promotes and supports the success of a program within an organization.

Red Tape

Excessive bureaucracy or adherence to rules and formalities, especially in public sector organizations, leading to slow or complicated administrative procedures.

Line Positions

Roles in an organization that are directly involved in the core business operations, such as production and sales.

Authority

The power or right granted to an individual or organization to make decisions, give orders, and enforce obedience.