Contingency Planning Is

question 9

Multiple Choice

Contingency planning is:

• A) forecasting the most likely outcomes.
• B) worrying about unlikely events.
• C) working through the consequences of the plan under different scenarios.
• D)formulating responses to inevitable surprises.

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Definitions:

At-Risk

The at-risk rules limit the amount of loss a taxpayer can claim to the amount actually at risk in the investment activity.

Form 6198

An IRS form used by taxpayers to determine the amount of at-risk activities loss that is deductible for the tax year.

At-Risk Amounts

At-Risk Amounts refer to the amount of money an individual could lose in an investment or venture, indicating the level of risk involved in the investment.

At-Risk Amount

The maximum amount of money or other assets that a taxpayer can claim as a deduction or loss from an activity, to the extent of the actual economic risk.