Which of the Following Is a Correct Definition of a Concept

question 78

Multiple Choice

Which of the following is a correct definition of a concept related to partnership taxation?

• A) The aggregate concept treats partners and partnerships as separate units and gives the partnership its own tax "personality."
• B) A partner's capital sharing ratio is defined as the percent of partnership assets (capital) that would be allocated to the partner upon liquidation of the partnership.
• C) The partnership's outside basis is defined as the sum of each partner's capital account balance.
• D) A special allocation is defined as an amount that could differently affect the tax liabilities of two or more partners.
• E) All of the statements are correct.

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Definitions:

Latent Defect

A hidden flaw in a product or property that is not easily observable or discoverable at the time of purchase.

Due Care

The effort made by a reasonable party to avoid harm to others or their property, typically by following a standard of conduct that meets legal or ethical expectations.

Sidewalk

A paved or otherwise improved path for pedestrian use, typically located along the side of a road.

Proximate Cause

The primary cause of an injury or damage in law, without which the injury would not have occurred.