Which of the Following Is a Valid Reason for Making

question 51

Multiple Choice

Which of the following is a valid reason for making a 754 election?

• A)An incoming partner pays more for a partnership interest that his or her proportionate share of partnership assets.
• B)Partners are able to increase their basis in the partnership interest upon the sale of a partnership interest.
• C)Partnerships can increase, but not decrease, their basis in partnership assets.
• D)A partnership can reduce its basis in assets upon cash distributions to partners.

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Definitions:

Professional Bureaucracy

An organizational structure where power is held by professionals with specialized knowledge rather than through formal managerial positions.

Standardization

The process of implementing and developing technical standards to ensure consistency, safety, and efficiency across products, services, and procedures.

Coordination

The organization of the different elements of a complex body or activity so as to enable them to work together effectively.

Machine Bureaucracy

A highly structured organizational form that operates through standardized procedures and a clear hierarchy of authority.