Rick, a Computer Consultant, Owns a Separate Business (Not Real

question 105

Multiple Choice

Rick, a computer consultant, owns a separate business (not real estate) in which he participates.He has one employee who works part-time in the business.

• A)If Rick participates for 500 hours and the employee participates for 620 hours during the year, Rick qualifies as a material participant.
• B)If Rick participates for 550 hours and the employee participates for 2,000 hours during the year, Rick qualifies as a material participant.
• C)If Rick participates for 120 hours and the employee participates for 120 hours during the year, Rick does not qualify as a material participant.
• D)If Rick participates for 95 hours and the employee participates for 5 hours during the year, Rick probably does not qualify as a material participant.
• E)None of these applies here.

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Definitions:

Self-confidence

The belief in one’s own abilities and judgment, often seen as a critical trait for effective leadership and decision-making.

Leader Characteristics

Attributes or qualities possessed by individuals that enable them to guide, influence, or direct a group towards the achievement of goals.

Trait Approach

A framework used in psychology to study personality, focusing on the identification and measurement of specific characteristics that differentiate individuals.

Cognitive Domain

Pertains to intellectual capabilities and processes such as thinking, knowing, remembering, and problem-solving.