_____ Are Associations Between Firms That Are Based on Contracts

question 28

Multiple Choice

_____ are associations between firms that are based on contracts and do not involve the sharing of ownership.

• A) Joint ventures 
• B) Cross-shareholdings 
• C) Non-equity based alliances 
• D) Strategic investments

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Definitions:

Passive Activities

Economic activities in which the individual does not materially participate, often resulting in income or losses for tax purposes.

Passive Income

Income resulting from rental property, limited partnerships, or other enterprises in which a person is not actively involved.

Personal/Rental Property

Property owned by an individual that may be used for personal enjoyment or rented out to generate income.

Flow-Through Entities

Business entities that pass income directly to owners or investors, avoiding corporate income tax.