In an Investment Center, the Manager Has Responsibility and Authority

question 89

Multiple Choice

In an investment center, the manager has responsibility and authority for making decisions that affect

• A)costs only
• B)revenues only
• C)assets only
• D)costs, revenues, and assets

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Definitions:

Section 1245

A tax code provision defining the treatment of gains from the sale of depreciable personal property, requiring that such gains be treated as ordinary income to the extent of depreciation taken.

Section 1231 Gain

The profit from the sale or exchange of real or depreciable property used in a business and held longer than one year.

Preferential Rates

Special, often lower, tax rates applied to certain types of income, such as capital gains or dividends, as an incentive or benefit.

Gross Assets

The total value of all assets owned by a company, individual, or entity before subtracting any liabilities.