What Is the Rationale for the Specific Rules Partnerships Must

question 6

Multiple Choice

What is the rationale for the specific rules partnerships must follow in determining a partnership's taxable year-end?

• A) To increase the amount of aggregate tax deferral partners receive
• B) To minimize the amount of aggregate tax deferral partners receive
• C) To align the year-end of the partnership with the year-end of a majority of the partners
• D) To spread the workload of CPAs more evenly over the year
• E) To minimize the amount of aggregate tax deferral partners receive and to align the year-end of the partnership with the year-end of a majority of the partners

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Definitions:

Sacrifice Ratio

The cost of reducing inflation in terms of the amount of output or gross domestic product that is foregone.

Inflation

The tempo at which the comprehensive price tags for goods and services grow, depleting the shopping power.

Unemployment

The situation when individuals who are capable of working and are actively seeking a job are unable to find employment.

Low Sacrifice Ratio

A condition indicating that an economy can reduce inflation with a relatively small decrease in economic output or increase in unemployment.