Under Which of the Following Circumstances Would a Partnership Terminate

question 18

Multiple Choice

Under which of the following circumstances would a partnership terminate and close its tax year?

• A)Divorce of a partner
• B)Cessation of business activities by the partnership
• C)Entry of a new partner
• D)Distribution of property to a 10 percent partner in complete termination of the partner's interest in the partnership
• E)None of these

---

Definitions:

Preconventional

The first level in Kohlberg's stages of moral development, where moral reasoning is based primarily on perceived consequences of actions and obedience to authority.

Level

A specific height or degree of advancement or progress in a sequence or hierarchy.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Punished

The infliction or imposition of a penalty as retribution for an offense or undesirable behavior.