A Crash R&D Program by One Firm Cannot Replicate a Successful

question 59

Multiple Choice

A crash R&D program by one firm cannot replicate a successful technology developed by another firm when research findings cumulate. This is an example of

• A) social complexity.
• B) path dependency.
• C) physical uniqueness.
• D) causal ambiguity.

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Definitions:

Passive Activity

Passive activity involves business or trade activities in which the person is not actively involved, affecting how losses and income are treated for tax purposes.

Suspended Losses

Losses that cannot be deducted in the current year and must be carried forward to future years for deduction under certain tax rules.

Actively Participated

Actively Participated refers to a taxpayer's involvement in the operations and decision-making of an investment or business activity, which may affect tax treatment.

Class Asset

Categories of assets grouped together based on having similar financial characteristics, often used in finance for valuation and risk assessment.