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:

Reactant

Substance that participates in a chemical reaction. Compare with product.

Carbonic Acid

A weak acid formed when carbon dioxide is dissolved in water, playing a significant role in the carbon cycle and blood pH regulation.

Carbon

A chemical element with symbol C, atomic number 6, and is the basis of all known life on Earth, found in organic compounds.

Oxygen

A chemical element essential for most life on Earth, involved in cellular respiration and acting as a critical component of the air.