All of the following statements concerning the controlled group and affiliated service group rules are correctEXCEPT:

1. An affiliated services group exists when there is common ownership and one business is service-oriented.
2. If two business partners each own 50% of each of three companies, then all three will be part of a brother-sister controlled group.
3. A parent-subsidiary controlled group exists if the parent owns 80% or more of the subsidiary.
4. The ownership interests of an individual's adult child or spouse are never attributed to that individual.