Jon Owns an Apartment Building in Which He Is a Material

question 71

Multiple Choice

Jon owns an apartment building in which he is a material participant and also owns 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 these these applies here.

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Definitions:

Reliable

The quality of being consistently good in performance, allowing someone or something to be trusted.

Scientific Management

Uses systematic study of job components to develop practices to increase people’s efficiency at work.

Frederick Taylor

is known as the father of scientific management, emphasizing efficiency and productivity through the systematic study of work processes.

Paired Comparisons

A method used to evaluate, rank, or make choices between options by comparing them in pairs.