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Imagine yourself as a member in a business partnership; your role is to run the daily operations of the business. The partnership offers you the
Imagine yourself as a member in a business partnership; your role is to run the daily operations of the business. The partnership offers you the choice of the following two types of compensation; guaranteed payments or distributive income shares. In a business year in which both types of income would be of the same dollar amount, identify the reasons why you might choose one type of compensation over the other. Explain and justify your reasoning. HINT: The tax implications can be significant.
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