Which of the Following Is Not a Good Reason to Form

question 19

Multiple Choice

Which of the following is not a good reason to form a family partnership?

• A) Income can be shifted to lower-tax-rate individuals
• B) A buy-sell agreement can ensure that all ownership interests are retained in the family
• C) No gift tax is due on the transfer
• D) Non-voting interests can be given to younger family members to ensure the older generation maintains operational control

---

Definitions:

Public School Districts

Administrative divisions within a state that are responsible for managing and operating public schools in a particular geographic area.

Marginal Cost Curve

A graphical representation showing the change in total production cost resulting from producing one additional unit of a good.

Upward-Sloping

Typically refers to the positive slope of a supply curve in economics, indicating that as the price increases, the quantity supplied also increases.

Output

The collective volume of products or services generated by an enterprise, sector, or economic system.