When Determining the Guaranteed Payment, Which of the Following Statements

question 66

Multiple Choice

When determining the guaranteed payment, which of the following statements is correct?

• A) If the distributive share is less than the guaranteed minimum amount, the guaranteed payment is equal to the difference between the distributive share and the guaranteed minimum amount.
• B) The distinction between guaranteed payments and distributive shares is clear in practice.
• C) Guaranteed payments are payments determined with regard to the partnership income.
• D) If the distributive share is greater than the guaranteed minimum amount, the guaranteed payment is equal to the difference between the distributive share and the guaranteed minimum amount.

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Definitions:

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