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Lloyd Is a Partner of an Ordinary Partnership Firm in the Business

question 49

Multiple Choice

Lloyd is a partner of an ordinary partnership firm in the business of providing tax services.While serving a client on behalf of the partnership,Lloyd's partner Janet intentionally understates the client's taxable income on a federal tax return.When the true income is reported a few years later,the client is required to pay a penalty.The client sues the partnership and its partners.Which of the following is correct?


Definitions:

Property

refers to items, both tangible and intangible, that are owned by individuals or entities and have value.

RUPA

The Revised Uniform Partnership Act, overseeing the functioning of partnerships within the United States.

Transferable Interest

A transferable interest refers to the share, right, or property that can be transferred from one party to another, often seen in the context of partnerships or membership interests in limited liability companies.

Ownership Rights

Legal rights that convey the ability to possess, use, and dispose of property, intellectual property, or other assets.

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