Final answer:
In a partnership, the ordinary business allocation can be treated as self-employment income for the partners.
Step-by-step explanation:
Self-employment income refers to income earned by individuals who are self-employed. While the question does not provide specific context, one type of business entity in which the ordinary business allocation can be treated as self-employment income is a partnership.
In a partnership, the partners share in the profits and losses of the business. Each partner pays taxes on their share of the income, and the business itself does not have to pay taxes. Therefore, the ordinary business allocation in a partnership can be treated as self-employment income for the partners.
It is important to note that this may not always be the case, as the taxation of business income can vary based on factors such as the entity's tax status and the specific allocation of income.