Which of the Following Is Not a Characteristic of a Partnership

question 83

Multiple Choice

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

• A)Must be formed under state law
• B)Formation is generally tax free except for services received for a partnership interest
• C)Distributions of entity income are tax-free
• D)Loss is never recognized on a nonliquidating distribution

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Definitions:

Vacation Days

Days allocated to an employee on which they are allowed to be absent from work, typically for rest or leisure.

Independent Premises

Refers to arguments where each premise supports the conclusion on its own.

Diagram

A simplified drawing or chart that shows the structure or explains the operation of something, often used in educational and technical contexts.

Arrows

Symbols used to indicate direction, represent logical relations, or signify movement from one position to another.