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:

Social Construction

Social construction is the theory that many aspects of reality, including shared beliefs, identities, and norms, are created through collective social processes rather than being inherent or natural.

Biological Fact

A statement or principle that is empirically verifiable based on biological research and knowledge.

Ethnicity

A social construct that categorizes individuals based on common cultural characteristics such as language, religion, and customs.

Colonialist

Pertaining to or characteristic of colonialism, involving the practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting it economically.