Multiple Choice
Which of the following is an accurate statement about the formation of partnerships?
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1. Introduction to Accounting
Business Organization
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Which of the following is NOT one of the nonfreehold estates that can be held by tenants?
A
Tenancy for years
B
Estate in fee simple
C
Periodic tenancy
D
Tenancy at will
Verified step by step guidance1
Understand the concept of nonfreehold estates: Nonfreehold estates are types of property interests that tenants hold for a limited duration or under specific conditions. These include tenancy for years, periodic tenancy, and tenancy at will.
Recognize the term 'estate in fee simple': This is a freehold estate, not a nonfreehold estate. A fee simple estate represents the highest form of property ownership, granting indefinite ownership rights to the holder.
Compare the options provided: Tenancy for years, periodic tenancy, and tenancy at will are all nonfreehold estates, as they involve temporary or conditional possession of property.
Identify the correct answer: Since 'estate in fee simple' is a freehold estate and not a nonfreehold estate, it does not belong to the category of estates held by tenants.
Conclude the reasoning: The correct answer is 'Estate in fee simple,' as it is fundamentally different from the other options listed, which are all nonfreehold estates.
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