The Three Crosby Children Intend to Form a Business

question 65

Multiple Choice

The three Crosby children intend to form a business. The business will borrow $900,000 from a local bank. Which of the following statements is true?

• A) Regardless of whether the business is a partnership or an S corporation, the owners will include the bank debt in the tax basis of their ownership interests.
• B) From a liability standpoint, the owners should be indifferent as to whether they are a general partnership or an S corporation.
• C) If the business is an S corporation, the owners can allocate income and losses in any reasonable manner.
• D) If the business is a partnership the owners can allocate income and losses in any reasonable manner.

---

Definitions:

Sleep Patterns

Refers to the cyclical rhythms and behaviors associated with sleep, including duration, quality, and timing across the 24-hour day.

Delayed Phase Preference

A chronotype characterized by the preference to go to sleep late and wake up late.

Preferred Sleep Schedule

An individual's natural tendency for sleeping at certain times within the 24-hour cycle, influenced by circadian rhythms.

Risky Sexual Activity

Refers to behaviors that increase the risk of contracting sexually transmitted infections (STIs) or resulting in unwanted pregnancies.