Which of the Following Statements Regarding the Sale of a Partnership

question 64

Multiple Choice

Which of the following statements regarding the sale of a partnership interest is false?

• A) The selling partner determines the gain or loss as the difference between the amount realized and her outside basis in the partnership.
• B) The seller's primary tax concern in a partnership interest sale is calculating the amount and character of gain or loss on the sale.
• C) Any debt relief increases the amount the partner realizes from the sale.
• D) Hot assets change the character of a gain on the sale from ordinary income to capital gain.

---

Definitions:

Democratic Leadership

A leadership style in which members of a group take a more participative role in the decision-making process.

Power And Authority

The capacity to influence or direct people's behavior and the legitimate right to make decisions and enforce obedience.

Employee Involvement

The degree to which employees are able to participate in decision-making processes and contribute ideas within an organization.

Charismatic Leaders

Leaders who possess a magnetic personality and charm, inspiring devotion and enthusiasm in others.