Which of the Following Is True About Administrative Services and Transactions

question 71

Multiple Choice

Which of the following is true about administrative services and transactions?

• A)It involves developing effective HR systems and helping implement business plans and talent management.
• B)It emphasizes on knowing the business and exercising influence.
• C)It emphasizes on the knowledge of HR and of the business and competition.
• D)It contributes to business strategy based on considerations of human capital.
• E)It deals with practices like compensation, hiring, and staffing.

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Definitions:

Passive Activity

Passive activity involves business or trade activities in which the person is not actively involved, affecting how losses and income are treated for tax purposes.

Suspended Losses

Losses that cannot be deducted in the current year and must be carried forward to future years for deduction under certain tax rules.

Actively Participated

Actively Participated refers to a taxpayer's involvement in the operations and decision-making of an investment or business activity, which may affect tax treatment.

Class Asset

Categories of assets grouped together based on having similar financial characteristics, often used in finance for valuation and risk assessment.