Which of the Following Expenditures Is Completely Deductible

question 33

Multiple Choice

Which of the following expenditures is completely deductible?

• A)$1,000 spent on compensating your brother for a personal expense.
• B)$50 spent on meals while traveling on business.
• C)$2,000 spent by the employer on reimbursing an employee for entertainment.
• D)All of these expenses are fully deductible.
• E)None of these expenses can be deducted in full.

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Definitions:

Related Diversification

A growth strategy where a business expands its operations into areas that are similar to its existing operations, aiming to leverage its existing strengths and capabilities.

Business Strategy

Deals with how the firm will compete in each market where it conducts business.

Retrenchment

The act of reducing costs or spending in response to economic difficulty, often involving layoffs or downsizing of an organization.

Prospector Strategy

A business approach focused on innovation, seeking out new markets and opportunities, characterized by flexibility and a readiness to adapt to changing environments.