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

---

Definitions:

Information

Data that is processed, organized, or structured in a given context to make it meaningful or useful.

Organizing

The act of arranging or structuring elements in a systematic way, often in the context of social or political movements.

Structure

The arrangement or organization of related elements in a systemic whole, often used to describe physical constructs, societal systems, or logical frameworks.

Groupthink

A psychological phenomenon where the desire for group cohesion leads to poor decision-making or critical reasoning.