In order to qualify as a partnership, how many participants must hold a partnership interest?   (A) Two or more with an interest of more than 5%. (B) One partner with more than a 50% interest. (C) Two or more with any amount of interest. (D) Three or more.

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In order to qualify as a partnership, how many participants must hold a partnership interest?

 

(A) Two or more with an interest of more than 5%.

(B) One partner with more than a 50% interest.

(C) Two or more with any amount of interest.

(D) Three or more.

 

Expert Solution
Step 1: Define Partnership Interest:

A partnership interest describes an individual or entity's share of ownership in a partnership, which includes their rights to profits, losses, decision-making, and assets of the partnership. It represents the partner's financial and managerial stake in the business.

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