Identify Which of the Following Statements Is True

question 8

Multiple Choice

Identify which of the following statements is true.

• A)Distribution of partnership income in the form of cash to partners is generally tax-free to the partners and the partnership.
• B)When partners receive cash distributions from the partnership, they pay taxes on those distributions.
• C)If money distributions exceed the partner's basis in the partnership interest, the partner would have to recognize gain on the distribution from the partnership. Such gain is usually an ordinary gain.
• D)All of the above are true.

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Definitions:

Isolation

A state in which an individual or group is separated from others, which can be physical, social, or emotional in nature.

Autonomy

The capacity to make an informed, uncoerced decision independently.

Organizational Conflict

The discord that arises when the goals, interests, or values of different individuals or groups within an organization are incompatible.

Causes

Factors or events that bring about certain effects or results.