Which One of the Following Is a True Statement Regarding

question 39

Multiple Choice

Which one of the following is a true statement regarding the allocation of partnership debt among the partners for purposes of calculating basis?

• A) No debt is allocated to LLC members because they are not liable for entity debts.
• B) Nonrecourse debt is not allocated to general partners unless they personally guarantee the debt.
• C) In a limited partnership, debt is only allocated to general partners.
• D) In a limited liability partnership, debt is allocated among the managing partners, but not the partners with "limited liability."
• E) For basis purposes, partnership debt is allocated among the partners even if no partner is personally liable for the debt.

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Definitions:

Overpopulation

A condition where an area's population exceeds the capacity of the environment to support it at an acceptable standard of living.

Capitalism

A financial structure where the means for producing goods and services are privately owned, aiming to generate profit.

Exurbs

Rural residential areas within commuting distance of the city.

Thomas Malthus

An English economist and demographer known for his theory on population growth and its potential impacts on resources.