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Scenario 7-3 After Filing for Bankruptcy in 2009 and Requiring Nearly $58

question 45

Multiple Choice

Scenario 7-3
After filing for bankruptcy in 2009 and requiring nearly $58 billion in governmental funding simply to stay afloat, General Motors realized it had to undergo major changes in order to compete with more successful automakers. The company began designing questionnaires and focus groups in order to gain a better understanding of what its cars had been lacking, and to probe for specific improvements consumers may have been looking for. The company recorded its research findings and began to apply them to its product line. A little over a year later, Consumer Reports stated that 83 percent of Chevrolets, GM's top brand, had an average or better score in terms of predicted reliability, an increase from 50 percent the year before. Apparently, the company's efforts helped turn the company in the right direction.("Consumer Reports: GM Reliability Makes Great Strides." MSNBC.com, October 26, 2010.)
-(Scenario 7-3) Allowing consumers to look at advertisements in a group can be a powerful indicator of their true feelings toward a particular ad.Peer influence can be observed,and hopefully some level of post-test screening can be done to create increased validity.These elements are characteristic of what kind of studies?

Explain the concept of passive activities and the circumstances under which a rental activity is classified as such.

Describe the rules for material participation and the classification of rental activity as a trade or business.

Understand the treatment of rental income and expenses for properties used both personally and for rental purposes.

Explain the tax treatment of income from flow-through entities.

Definitions:

Better Products

Goods that are of higher quality or more desirable compared to others available in the market.

Lobbying

The act of influencing decisions made by officials in the government, often practiced by special interest groups or individuals.

Democratic Representative Government

A form of government where citizens elect representatives to make decisions and pass laws on their behalf.

Economic Efficiency

A state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.