What Form Does a Partnership Use When Filing an Annual

question 47

Multiple Choice

What form does a partnership use when filing an annual informational return?

• A)Form 1040
• B)Form 1041
• C)Form 1065
• D)Form 1120

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Definitions:

External Benefits

Positive effects experienced by third parties as a result of an economic transaction not directly involved.

Efficient Outcome

A situation in which no individual can be made better off without making someone else worse off, typically referring to an optimal allocation of resources.

Output Level

The total quantity of goods or services produced by a firm or industry within a specific period.

External Costs

Costs that are not borne by the producer or consumer of a good or service, but by third parties or society as a whole, such as pollution.