A Partnership Terminates for Tax Purposes

question 21

Multiple Choice

A partnership terminates for tax purposes

• A) when at least 50% of the total interest in partnership capital and profits changes hands by sale or exchange within twelve consecutive months.
• B) only when it terminates under local partnership law.
• C) when a partnership tax return (Form 1065) ceases to be filed by the partnership.
• D) when the sale of partnership assets is made only to an outsider(s) and not to an existing partner(s).

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Definitions:

Baroreceptor Reflex

Detects changes in blood pressure and produces changes in heart rate, heart force of contraction, and blood vessel diameter that return blood pressure to homeostatic levels.

Sympathetic Output

The activity or signals generated by the sympathetic nervous system, which is involved in the body's fight-or-flight response.

SA Node

The SA node, or sinoatrial node, acts as the heart's natural pacemaker, initiating the electrical impulse that triggers heart contractions and regulates heart rate.

Venous Compliance

The capacity of veins to expand in response to increased blood volume, an important factor in regulating blood pressure.