Identify Which of the Following Statements Is True

question 34

Multiple Choice

Identify which of the following statements is true.

• A)Formation of a partnership requires legal documentation.
• B)An individual engaged in the active conduct of a business must elect not to be taxed as a partnership.
• C)A partnership exists as long as there are at least two individuals or entities engaged in the active conduct of a trade or business or a financial operation, and the business is not a trust or a corporation.
• D)All of the above are false.

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Definitions:

Operating Experience

Accumulated knowledge and skills from directly managing or running business operations.

Intellectual Honesty

Commitment to truth and objectivity in one’s reasoning and arguments, avoiding bias or misrepresentation of facts.

Owning Resources

Refers to having legal possession or control over resources such as property, intellectual property, or financial assets.

Professional Experience

The accumulation of knowledge, skills, and expertise that individuals gain through performing tasks in their respective fields or careers.