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What Is the Most Likely Disadvantage of Direct Investment for an Investing

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What is the most likely disadvantage of direct investment for an investing company?


Definitions:

Deferred Liability

A liability that is recognized on the balance sheet but will be settled at some point in the future.

Tax Benefit

A tax policy that allows certain deductions, credits, or exclusions that ultimately reduce a taxpayer's burden, improving financial efficiency.

Operating Loss Carryforward

A tax provision that allows businesses to apply current year's operating losses to future profits for tax relief.

Taxable Income

Income of an individual or corporation subject to tax by governmental authorities.

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