Identify Which of the Following Statements Is True

question 11

Multiple Choice

Identify which of the following statements is true.

• A) Formation of a partnership requires legal documentation.
• B) A partnership exists as long as there are at least two individuals or entities engaged in the active conduct of a trade or business or a financial operation, and the business is not a trust or a corporation.
• C) An individual engaged in the active conduct of a business must elect not to be taxed as a partnership.
• D) All of the above are false.

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Definitions:

Food

any nutritious substance that people or animals eat or drink to maintain life and growth.

Infirmity

Illness, disease.

Illness

A condition that negatively affects a person's normal physiological or psychological state, often characterized by specific signs and symptoms.

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific signs or symptoms or that affects a specific location and is not simply a direct result of physical injury.