Critical Thinking Questions

question 56

Multiple Choice

Critical Thinking Questions
Case 1-2
Your boss asks you to create a couple different kids of SmartArt to help her make some important points in her presentation to the board of directors.
In one of her slides, she is looking to illustrate the chain of command in a new division of the corporation. Which SmartArt category will work best for organizing this content?

---

Definitions:

Passive Income/Loss

Earnings from rental property, limited partnerships, or other enterprises in which the individual is not actively involved.

Passive Activity Loss Rules

Regulations that limit the amount of losses taxpayers can deduct from passive activities, such as rental properties, against other income.

At-Risk Rules

Tax regulations limiting the amount of deductible losses from certain types of investments to the amount actually at risk.

Passive Activity

Economic activities in which the taxpayer does not materially participate, like rental property, often with distinct tax rules.