Which of the Following Is a Key Difference Between a Formal

question 68

Multiple Choice

Which of the following is a key difference between a formal group and an informal group?

• A) A formal group is the only formed for task functions, whereas informal groups are only formed for relational functions.
• B) A formal group is only formed at department level or higher, whereas informal groups can occur at any level in an organisation.
• C) A formal group is constructed by management whereas an informal group has not been formally established within the organisation
• D) There are no key differences between formal and informal groups within organisations

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Definitions:

Home Equity Indebtedness

Debt secured by a qualified residence that exceeds the acquisition indebtedness, with interest on such debt often being deductible under U.S. tax law.

Acquisition Indebtedness

Debt incurred in acquiring, constructing, or substantially improving a qualified residence of the taxpayer, and secured by the residence.

Qualified Residence Interest

Interest paid on a mortgage for a primary or secondary residence, which can be deductible for taxpayers who itemize deductions.

Deductibility

The extent to which an expense can be subtracted from gross income to reduce taxable income and lower the tax liability.