What Is the Difference Between the Aggregate and Entity Theory

question 5

Essay

What is the difference between the aggregate and entity theory of partnership taxation? Provide two examples of how partnership tax rules reflect the aggregate theory and two examples of how they reflect the entity theory.

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Definitions:

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all human beings share.

Shared Power Strategy

Pursues change by participation in assessing values, needs, and goals.

Sociocultural Norms

Shared patterns of behaviors, beliefs, and values that regulate the interactions of people in specific social groups.

Referent Power

Referent power is the capacity to influence other people because of their desire to identify personally with you.