If You Wished to Leverage the Ubiquitous Nature of the Web

question 53

Multiple Choice

If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would:

• A) enable individual customization of the product by consumers.
• B) implement a strategy of commoditization.
• C) adopt a strategy of cost competition.
• D) develop a scope strategy to compete within a narrower market segment.

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Definitions:

Partnership Income

Earnings distributed to the partners of a partnership from the business, which is reported on their personal income tax returns.

Basis

The amount paid for an asset or investment, used to calculate gain or loss for tax purposes.

Active Participation

Involvement in making management decisions and the right to make significant and bona fide contributions to the operating and financial management of an activity.

Material Participation

A taxpayer's active and regular involvement in the operations of a business to qualify for certain tax benefits.