Jon Owns an Apartment Building in Which He Is a Material

question 6

Multiple Choice

Jon owns an apartment building in which he is a material participant and a computer consulting business.Of the 2,000 hours he spends on these activities during the year, 55% of the time is spent operating the apartment building and 45% of the time is spent in the computer consulting business.

• A)The computer consulting business is a passive activity but the apartment building is not.
• B)The apartment building is a passive activity but the computer consulting business is not.
• C)Both the apartment building and the computer consulting business are passive activities.
• D)Neither the apartment building nor the computer consulting business is a passive activity.
• E)None of the above.

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Definitions:

Tight Culture

Cultures or organizations characterized by rigorous rules, regulations, and expectations that govern member behavior, ensuring uniformity and conformity.

Cultural Distance

The degree to which cultural norms, values, and practices differ between two groups, societies, or countries.

Impedes Communication

refers to any barriers or obstacles that interfere with the effective exchange of ideas, messages, or information among individuals or groups.

Cultural Distance

The extent to which different cultures diverge from one another, affecting communication, management practices, and business strategies when engaging across borders.