George, Paul, and Sue Tend to Sit Together at Meetings

question 7

Multiple Choice

George, Paul, and Sue tend to sit together at meetings and like telling stories to each other, sharing private jokes, and sometimes talking about other group members. Within the larger group, the trio would be known as a _____.

• A) group deviate
• B) referent group
• C) clique
• D) blocker

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Definitions:

Recognized Gain

The portion of a capital gain on which taxes must be paid, typically realized when an asset is sold for more than its purchase price.

Adjusted Basis

The original cost of a property plus improvements and minus depreciation or damages, used to calculate capital gains or losses.

Fair Market Value

The price at which a property would sell under normal conditions in an open and competitive market.

Recognized Gain

This is the portion of gain realized from the sale or exchange of an asset that is subject to taxation under the IRS code.