Question

Grady and Hedy do business as Island Tours. For federal income tax purposes, Island Tours would be treated as an aggregate of the individual partners.

a.a natural person.
b.an entity.
c.a non-existent party.

Answer 1

The business done as an Island tours are considered to be an aggregate of the individual partners.

Step-by-step explanation:

Aggregate of individual partner complies with that of the theory of partnerships. Here, in the aggregate theory of partnerships, it states that the partner are no legal entity as segregation like an organization or corporation.

But they have an aggregate existence on legal basis, with the structural function to be individualistic in approach, as per as, income share, etc. The option mentioned in continuation of the given question is treated as correct option, rest marked as option a, b and c are incorrect.