Which of the Following Statements Regarding Disproportionate Distributions Is False

question 89

Multiple Choice

Which of the following statements regarding disproportionate distributions is false?

• A)A disproportionate distribution occurs when a partner receives more than his proportionate share of the partnership's hot assets.
• B)A disproportionate distribution occurs when a partner receives less than his proportionate share of the partnership's hot assets.
• C)The tax provisions related to disproportionate distributions attempt to preserve the partners' share of ordinary income potential.
• D)Disproportionate distributions will only occur in liquidating distributions.

---

Definitions:

Domesticated In Mexico

Refers to plants or animals that were first domesticated within the geographic region of Mexico, such as maize and the turkey.

Privatizing

The process of transferring ownership of a business, enterprise, agency, or public service from the government to private individuals or organizations.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, water, and fertile land.