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The Whitmer Trust Operates a Manufacturing Business

question 107

True/False

The Whitmer Trust operates a manufacturing business. When Whitmer incurs a net operating loss, the current-year deduction passes through to the income beneficiaries.


Definitions:

UPA

Abbreviation for "Uniform Partnership Act," a uniform law regulating the formation, operation, and dissolution of partnerships in the United States.

Term Partnership

A partnership that is set up to run for a set time period or in order to accomplish a task of some sort.

Unlimited Liability

The legal obligation of business owners to pay all of their business debts personally, without limit, which exposes personal assets to risk.

Sole Proprietorship

A business formed by the sole proprietor. It is the easiest business organization to form.

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